Asian markets today advanced despite ongoing tariff uncertainty, after US President Donald Trump said over the weekend that global tariffs would be raised to 15% from 10%.
The announcement followed a ruling by the U.S. Supreme Court striking down a significant portion of the administration’s trade measuresunder the International Emergency Economic Powers Act (IEEPA).
On Monday, South Korea’s Kospi extended its gains for a third consecutive session, climbing 1.7% to a new record high, led by index heavyweights SK Hynix and Samsung Electronics, which advanced more than 3% and 2%, respectively. The small-cap Kosdaq index also moved higher, adding 0.74%.
In Australia, the S&P/ASX 200 edged up 0.17% in early trading. Futures for Hong Kong’s Hang Seng index stood at 26,855, above its previous close of 26,413.35.
Meanwhile, markets in China and Japan remained shut due to a public holiday.
What’s behind the rally?
Asian markets rallied around the uncertainty after Trump announced global tariffs would increase to 15% from 10%.
Uncertainty further intensified after the US Supreme Court struck down President Donald Trump’s emergency tariffs, prompting him to propose a new 10% tariff on the rest of the world, which was later raised to 15% in a move that appeared to catch even some of his own officials off guard.
It remained unclear when the tariffs would take effect, which products might be exempt, and whether all countries would face the 15% rate. Some nations, including the United Kingdom and Australia, had been subject to 10% tariffs under the earlier framework, while several Asian economies faced higher duties.
According to Madhavi Arora, Lead Economist at Emkay Global Financial Services, the effective US tariff rate will provide immediate relief to nations facing steep IEEPA tariffs, such as Brazil (~50%). Asia (including India) stands to gain as well, with most nations now on a near-equal footing on US tariffs.
“After China, Vietnam, Japan, and South Korea are the most affected by these duties, with Japan and Korea particularly affected as the US is their primary auto export market (despite a lower negotiated Section 232 tariff of 15% on their auto exports),” Arora added.
US stock market today
U.S. equities closed higher on Friday, driven by strong gains in heavyweight stocks such as Alphabet and Amazon, after the Supreme Court of the United States overturned global tariffs imposed by President Donald Trump.
The S&P 500 advanced 0.69% to finish at 6,909.51, while the Nasdaq rose 0.90% to 22,886.07. The Dow Jones Industrial Average also moved higher, gaining 0.47% to settle at 49,625.97.
Some of Wall Street’s most valuable companies, like Alphabet Inc., climbed 3.7%, Amazon gained 2.6%, and Apple rose 1.5%.
Data released earlier in the day showed that economic growth in the United States slowed more than anticipated in the fourth quarter, while another report indicated that inflation accelerated in December.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
