Asian Markets Decline as Investors Evaluate U.S. Court Decision on Trump Tariffs

Market Overview

• Asia-Pacific Market Trends: Most Asia-Pacific markets experienced declines on Monday as investors reacted to a U.S. federal appeals court ruling declaring many of President Trump's tariffs illegal. The ruling indicated that Trump exceeded his authority by imposing tariffs on nearly all countries.

• U.S. Market Performance: On Wall Street, stocks fell on Friday, with the S&P 500 dropping 0.64% to close at 6,460.26, marking its fourth consecutive month of gains. The Nasdaq Composite decreased by 1.15% to 21,455.55, while the Dow Jones Industrial Average lost 92.02 points, or 0.20%, settling at 45,544.88. U.S. markets are closed on Monday for Labor Day.

Key Economic Indicators

• China's Manufacturing Data: Investors are closely monitoring China's manufacturing data, with a forecasted PMI reading of 49.7 for August, slightly up from 49.5 the previous month. Recent data indicated a PMI of 49.4 for August, a marginal increase from 49.3 in July.

• Alibaba's Stock Movement: Alibaba Group's shares surged nearly 13% on Wall Street following a better-than-expected financial performance in its June quarter, drawing investor attention.

Regional Developments

• India-China Relations: During a two-day meeting of the Shanghai Cooperation Organization, leaders from India and China emphasized their partnership in development rather than rivalry. Chinese President Xi Jinping is expected to address the summit.

• Futures and Index Performance: Futures for Hong Kong's Hang Seng index indicated a stronger opening at 25,319, compared to its last close of 25,077.62. In Japan, the Nikkei 225 fell by 0.92%, while South Korea's Kospi index decreased by 0.85%. Australia's S&P/ASX 200 benchmark retreated by 0.17%.