European benchmarks rise while Asian shares finished lower amid uncertainty over Trump's tariffs
TOKYO — European shares rose while Asian benchmarks finished mostly lower Friday as uncertainty grew about what will happen next after a U.S. court blocked many of President Donald Trump's sweeping tariffs.
France's CAC 40 rose 0.2 per cent in early trading to 7,796.14, while Germany's DAX jumped 0.6 per cent to 24,122.42. Britain's FTSE 100 added 0.6 per cent to 8,771.71. U.S. shares were set to drift lower with Dow futures down 0.1 per cent at 42,217.00. S&P 500 futures declined 0.1 per cent to 5,914.75.
Japan's benchmark Nikkei 225 lost 1.2 per cent to finish at 37,965.10. Government data showed Tokyo core inflation, excluding fresh food, rising to a higher-than-expected 3.6 per cent in May. Some analysts say that makes it more likely the Bank of Japan will raise interest rates.
Australia's S&P/ASX 200 rose 0.3 per cent to 8,434.70. South Korea's Kospi declined 0.8 per cent to 2,697.67, ahead of a presidential election set for next week.
Hong Kong's Hang Seng slipped 1.2 per cent to 23,289.77, while the Shanghai Composite shed 0.5 per cent to 3,347.49.
Earlier this week, the U.S. Court of International Trade said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports from around the world does not authorize the use of tariffs.
The ruling at first raised hopes in financial markets that a hamstrung Trump would not be able to drive the economy into a recession with his tariffs, which had threatened to grind down on global trade and raise prices for consumers already sick of high inflation.
But the tariffs remain in place for now while the White House appeals the ruling, and the ultimate outcome is still uncertain. The court's ruling also affects only some of Trump's tariffs, not those on foreign steel, aluminum and autos, which were invoked under a different law.
The Court of Appeals for the Federal Circuit on Thursday allowed the president to temporarily continue collecting the tariffs under the emergency powers law while he appeals the trade court's decision.
Un energy trading, benchmark U.S. crude rose 24 cents to US$61.18 a barrel. Brent crude, the international standard, edged up 23 cents to $64.38 a barrel.
In currency trading, the U.S. dollar declined to 143.96 Japanese yen from 144.12 yen. The euro cost $1.1342, down from $1.1367.
Yuri Kageyama, The Associated Press
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