Asian stocks mostly rose and the dollar fell on Monday after the US Supreme Court struck down a large part of President Donald Trump's tariffs policy that had sent
shockwaves through the global economy last year.

In Hong Kong, the benchmark Hang Seng Index rose 385 points, or 1.46 percent, to open at 26,798.

The China enterprises index was 131 points, or 1.5 percent, up at 9,091.

With mainland and Japanese markets closed still, the Asian rally was led by tech firms, as could be seen in Hong Kong with the tech index opening 92 points, or 1.8 percent, higher at 5,303 before surging further to chalk up gains of close to 200 points, or 3.7 percent, soon after.

E-commerce titans Alibaba and JD.com surged more than three percent.

In Seoul, the benchmark Kospi was up 84 points, or 1.45 percent, at 5,892 in early trading after climbing as much as 2.12 percent to an all-time high.

Technology counters had been at the forefront of regional gains this year as traders turned away from Wall Street to seek out cheaper investments amid concerns about extended valuations.

Trump's trade agenda was dealt a hefty blow on Friday when the country's top court ruled that the International Emergency Economic Powers Act (IEEPA) used by the White House to impose sweeping levies in April "does not authorise the president to impose tariffs."

A furious president immediately vowed to impose a global tariff of 10 percent under a separate authority, before raising it to 15 percent on Saturday.

However, the development fanned a fresh round of uncertainty, with calls growing for the government to repay cash taken under the scheme and analysts warning officials would likely pursue other ways of imposing his tolls.

"The first observation to make is that IEEPA tariffs may be dead, but Trump's trade regime isn't," wrote Rodrigo Catril at National Australia Bank.

"The administration has several avenues it can pursue, these are likely to be litigated over several years, but there is no sign President Trump is planning to back down.

"Another conclusion is that the tariff landscape is now more uncertain than before, uncertainty is not good news for any economy or market.

"Unless common sense prevails, we could be entering a circular process where new tariffs are announced, then potentially overturned, only for new tariffs to be announced, and we do the dance again."

The decision also raised questions about trade deals Washington has signed.

European leaders had been due to approve the EU-US deal on Tuesday, but the head of the European parliament's trade committee said he would call Monday for putting "legislative work on hold until we have a proper legal assessment and clear commitments from the US side".

And Indian trade officials have reportedly postponed a trip to the United States aimed at finalising their interim agreement.

Still, Asian investors welcomed the news, which is seen benefiting China and India, with tech firms the best performers. (AFP/Xinhua)


Edited by Tony Sabine