Asian Shares Mostly Higher Despite Tariff Uncertainty

(RTTNews) - Asian stocks ended mostly higher on Tuesday as traders evaluated the potential turbulence in the trade tariff environment following the U.S. Supreme Court's ruling on reciprocal tariffs.

It is believed that a uniform 15 percent tariff, announced by U.S. President Donald Trump, would benefit some Asia-Pacific economies that have faced much steeper tariff rates earlier.

But the uncertainty may worsen if the Trump administration continues imposing new tariffs under alternative laws.

On Monday, Trump warned countries against backing away from recently negotiated trade deals, saying that he would hit them with much higher duties under different trade laws.

Gold prices retreated from a three-week high in Asian trade due to an uptick in the U.S. dollar index.

Oil prices edged up on supply concerns as Trump reiterated his preference for a deal with Iran but warned of consequences if upcoming nuclear talks fail.

China's Shanghai Composite index jumped 0.87 percent to 4,117.41 as the People's Bank of India kept its benchmark lending rates unchanged for a ninth straight month to maintain currency stability.

The yuan rose to a near three-year high after the U.S. court tariff reprieve. China has called on the United States to rescind unilateral tariffs and warned of countermeasures after Trump announced a new 15 percent global tariff.

Hong Kong's Hang Seng index slumped 1.71 percent to 26,619.10, retreating from a near two-week high reached the previous day due to technology sector weakness and AI-related investor concerns.

Japanese markets advanced as traders returned from a holiday. The Nikkei average surged 0.87 percent to 57,321.09, with fiber-cable makers leading the surge on talk of bigger AI infrastructure spending.

Shares of Furukawa Electric soared 15.3 percent. Defense stocks underperformed after China's commerce ministry banned selling "dual-use" goods to a list of Japanese companies over worries of military use.

Seoul stocks notched another record high, driven by strong gains in the technology sector ahead of an earnings report from U.S. chipmaker Nvidia later this week.

The Kospi average surged 2.11 percent to a new record high of 5,969.64 despite steep overnight losses on Wall Street. Market bellwether Samsung Electronics rallied 3.6 percent while chip giant SK Hynix surged 5.7 percent to a record high.

Australian markets ended a choppy session marginally lower as tech stocks declined, offsetting strength in energy and mining stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index surged 0.83 percent to 13,532.31, extending gains from the previous session.

Overnight, U.S. stocks fell sharply as President Trump ramped up his new tariffs in light of the Supreme Court's tariff ruling on Friday, striking down his sweeping reciprocal taxes on imports from around the world.

Beyond a 15 percent tariff that could last for up to 150 days, unless Congress extends it further, Trump warned he could end up imposing tariffs in a "much more powerful and obnoxious way".

"Any Country that wants to 'play games' with the ridiculous supreme court decision, especially those that have 'Ripped Off' the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!" Trump said.

"During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again - GREATER THAN EVER BEFORE!!!" Trump said.

Trump also claimed that he does not need to go back to Congress for approval. The Dow slumped 1.7 percent to reach its lowest closing level in a month, while the tech-heavy Nasdaq Composite lost 1.1 percent and the S&P 500 shed 1 percent.