Global Bourses Rise As Court Rules Against Trump’s Tariffs

New York: Financial markets welcomed a US court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law. US futures jumped early Thursday and oil prices rose more than $1. The US dollar rose against the yen and euro.

A court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorise the use of tariffs. The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump’s trade war. The future for the S&P 500 was up 1.7 per cent while that for the Dow Jones Industrial Average gained 1.4 per cent.

Japan’s Nikkei 225 index jumped 1.9 per cent to 38,442.10. Elsewhere in Asia, Hong Kong’s Hang Seng added 1 per cent to 23,482.81, while the Shanghai Composite index gained 0.8 per cent to 3,365.40. Australia’s S&P/ASX 200 gained 0.1 per cent to 8,409.70. In South Korea, which like Japan relies heavily on exports to the US, the Kospi surged 1.8 per cent to 2,709.42.

Shares also were helped by the Bank of Korea’s decision to cut its key interest rate to 2.5 per cent from 2.75 per cent, to ease pressure on the economy. Taiwan’s Taiex edged 0.1 per cent lower, and India’s Sensex was also down 0.1 per cent.