Asia stock markets trade higher on Thursday after federal courts blocked President Trump's proposed "Liberation Day" tariffs. The U.S. Court of International Trade in Manhattan declared President Donald Trump's "Liberation Day" import tariffs unlawful, ordering their permanent blockage due to an overreach of authority. The court declared the measures "unlawful to all," extending beyond the five businesses that sued, and ordered the tariffs to be vacated and permanently blocked. The White House is expected to appeal the ruling. Simultaneously, the U.S. tightened export controls, largely blocking American firms from selling key technologies to China. The Bank of Korea lowered its base rate by 25 basis points to 2.50% during its May 2025 meeting, after holding rates steady in April, as expected. Gold prices fell below $3,260 per ounce on Thursday, marking a fourth straight day of decline, as reduced tariff risks eroded demand for safe-haven assets. Japan ( NKY:IND ) rose 1.68% to above 38,200 while the broader Topix Index gained 1.1% to 2,800 on Thursday, extending this week’s rally. The Japanese yen weakened toward 146 per dollar on Thursday, hitting a two-week low as easing tariff risks dampened demand for safe-haven assets. Japan’s consumer confidence index rose to 32.8 in May 2025, rebounding from April’s more than two-year low of 31.2. China ( SHCOMP ) rose 0.76% to above 3,350 while the Shenzhen Component gained 0.9% to 10,100 on Thursday, with mainland stocks snapping a five-day decline following a US federal court ruling that blocked President Donald Trump’s global tariffs, the offshore yuan slid past 7.20 per dollar on Thursday, marking its third consecutive session of decline. In a separate move, the Trump administration instructed US firms to suspend certain semiconductor software sales to China, introducing new uncertainty into already strained Sino-US trade relations. Pharmaceutical stocks rallied, with Wuxi Biologics up 7.3%, Sino Biopharma 1.4%, and CSPC Pharma 1.3%, following reports that China will revamp its pricing and procurement credit evaluation system. Hong Kong ( HSI ) rose 0.97% to 23,360 in early Thursday trade, rebounding from the previous session’s decline. India ( SENSEX ) rose 0.20% to 81,533.1 in morning trade on Thursday. On the data front, India’s industrial output grew 2.7% year-on-year in April, surpassing market expectations of a 1% rise but easing from March’s 3.9% growth, largely due to softer gains in manufacturing. Australia ( AS51 ) rose 0.26% to around 8,420 on Thursday, rebounding from the previous session’s losses. The Australian dollar hovered around $0.641 on Thursday, holding recent losses, as a strengthening US dollar continued to weigh on the currency. Private new capital expenditure on buildings and structures in Australia increased by 0.9% quarter-on-quarter in the first three months of 2025, accelerating from 0.2% in the previous quarter. Private new capital expenditure on equipment, plant, and machinery in Australia fell by 1.3% quarter-on-quarter in the three months to March 2025. Total new capital expenditure in Australia unexpectedly contracted by 0.1% quarter-on-quarter in the first quarter of 2025, missing market expectations of a 0.5% expansion. In the U.S., on Wednesday, all three major indexes ended lower as investors weighed earnings, Fed minutes, and trade tensions ahead of Nvidia’s results. Investors also awaited Senate deliberations over Trump’s wide-ranging tax and spending package, which is likely to see significant amendments in the upper chamber. U.S. stock futures climbed on Thursday after Nvidia posted stronger-than-expected quarterly results: Dow +1.39% ; S&P 500 +1.66% ; Nasdaq +1.99% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia’s monthly CPI slightly higher than expected at 2.4% in April Reserve Bank of New Zealand cuts rate by 25 basis points, projects deeper easing cycle Trump set to unveil trade deal with UK on Thursday - report China service growth hits 7-month low as trade disruptions weighs on new business orders Australia private sector expands at 51 in April, services sector expands for 15th straight month
