Market Uncertainty Over Trump's Tariffs Sparks Global Stock Reactions

Stocks in Asia fell on Friday, with the U.S. dollar and Treasury yields also experiencing declines as markets processed a court decision upholding President Donald Trump's tariffs. This came after a market rally on Thursday, spurred by a separate ruling that blocked many of these tariffs.

The Nikkei index in Japan led the sell-off, reacting to the fluctuating demand for the yen following the court's decision. The ebbs and flows in the yen's demand have a direct impact on Japan's exporter-heavy index. Trump's duties were reinstated temporarily by the U.S. Court of Appeals for the Federal Circuit as it reviews the government's appeal, reversing a prior ruling that held tariffs were a congressional concern.

Despite the legal back-and-forth, the Trump administration remains optimistic about maintaining tariffs through other means. Furthermore, the ongoing legal battle is adding uncertainty that has led to investment delays. Global indices like Hong Kong's Hang Seng, mainland China's blue chip index, and South Korea's KOSPI mirrored the negative sentiment, as did the MSCI Asia-Pacific shares index.

(With inputs from agencies.)