Asia-Pacific equities traded lower on Monday as investors digested a series of regional data releases and geopolitical developments, alongside a landmark United States court ruling on trade tariffs.
The U.S. Court of Appeals for the Federal Circuit ruled on Friday that most of President Donald Trump’s “reciprocal tariffs” were unlawful, saying the president had exceeded his authority when he imposed levies on nearly every country during his 2 April “liberation day” announcement.
The decision has renewed uncertainty over the future of U.S. trade policy.
Attention also turned to relations between India and China, as leaders at the Shanghai Cooperation Organization (SCO) summit emphasised that their nations were “development partners, not rivals”.
By 11:20 am AEST (1:20 am GMT), Australia’s S&P/ASX 200 was down 0.3%, Japan’s Nikkei 225 slid 1.2%, and South Korea’s Kospi 200 fell 0.5%.
Investors are closely watching Alibaba after its U.S.-listed shares surged 12.9% on Friday, buoyed by stronger-than-expected June-quarter earnings.
In macroeconomic data, South Korea’s exports rose 1.3% year-on-year in August to $58.40 billion, well below expectations of a 3% rise and down sharply from July’s 5.9% increase.
The weakness was driven by a steep drop in U.S.-bound shipments, the sharpest decline since the COVID-19 pandemic, reflecting higher tariffs.
In Australia, building approvals fell 8.2% in July to 15,769 dwellings, according to the Australian Bureau of Statistics (ABS).
The decline exceeded forecasts of a 4.8% fall and followed an 11.9% jump in the prior month.
On Wall Street, major indices ended lower on Friday, with the Dow Jones Industrial Average down 0.2%, the S&P 500 off 0.6%, and the Nasdaq Composite losing 1.2%.
U.S. markets remain shut on Monday for the Labor Day holiday.
In commodities, Brent crude slipped 0.7% to US$67.48 per barrel, while spot gold rose 0.9% to near record highs of US$3,447.44 per ounce.
Chinese equities gained on Friday, with the Shanghai Composite up 0.4% at 3,857.9 and the CSI 300 advancing 0.7% to 4,516.9, its highest close since July 2022.
Hong Kong’s Hang Seng Index added 0.3% to 25,077.6, while India’s BSE Sensex slipped 0.3% to 79,809.7.
In Europe, markets closed weaker on Friday. London’s FTSE 100 dipped 0.3% to 9,187.3, Germany’s DAX fell 0.6% to 23,902.2, and France’s CAC 40 slid 0.8% to 7,703.9
