Asia-Pacific markets faced a downturn on Friday, reflecting concerns over a decelerating U.S. economy, persistent inflation fears, and uncertainties surrounding recent judicial developments linked to former President Donald Trump’s “reciprocal” tariffs.
A significant ruling from the U.S. Court of International Trade on Wednesday night stated that Trump had exceeded his legal authority in implementing these tariffs, resulting in an order to vacate the contested tariff measures. However, the Trump administration quickly responded by filing an appeal, and on Thursday afternoon, an appeals court reinstated the tariffs. The administration indicated it might seek an emergency pause from the Supreme Court as soon as Friday to challenge the initial ruling.
In an interview with Fox News on Thursday, Treasury Secretary Scott Bessent remarked that trade discussions between the U.S. and China appear to be “a bit stalled.”
In Japan, the benchmark Nikkei 225 index slipped by 1.22%, closing at 37,965.10, while the broader Topix index fell 0.37% to finish at 2,801.57, as investors analyzed several new economic data reports. Notably, Tokyo’s core inflation rate for April, which excludes fresh food prices, rose 3.6% year-over-year, marking the highest increase since January 2023.
South Korea reported a dip in stock values, with the Kospi index declining 0.84% to close at 2,697.67, and the smaller Kosdaq falling 0.26% to finish at 734.35. In mainland China, the CSI 300 index closed 0.48% lower at 3,840.23, while Hong Kong’s Hang Seng Index dropped by 1.2% to 23,289.77.
Meanwhile, in India, the benchmark Nifty 50 decreased by 0.22%, and the BSE Sensex edged down 0.3% by 1:40 p.m. Indian Standard Time. Conversely, Australia saw a modest rise, with the S&P/ASX 200 climbing 0.3% to close at 8,434.70.