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Markets lift on tariff relief as Asia and Europe open higher

2025/05/29/14:48
in Financial insights
Reading Time: 2 mins read
253 8
A A
Bank of England boss signals interest rates may have peaked

Andrew Bailey says the Bank of England will assess the impact of tighter policy on the economy before sanctioning any fresh moves.

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Asian and European stock markets opened on a positive note today, Thursday 29 May, with investors reacting to a United States court ruling that struck down a set of tariffs imposed during the Trump administration. The decision has raised hopes for a relaxation of trade tensions and boosted global equity sentiment ahead of the US market session.

In Asia, all major exchanges remained open except for the Indonesian Stock Exchange, which closed in observance of Ascension Day. The Nikkei 225 in Tokyo rose by nearly 2%, buoyed by a sharp rally in semiconductor shares and exporters who would benefit from a more open global trading environment. South Korea’s KOSPI climbed 1.9%, while Hong Kong’s Hang Seng and China’s Shanghai Composite also traded in positive territory, with modest but broad-based gains. India’s Sensex advanced over 400 points in early trade, supported by foreign inflows and strong corporate earnings.

The rally followed the US court’s ruling that deemed sections of former President Trump’s tariff policy unlawful. Market participants interpreted the verdict as a signal that future administrations may face legal constraints in using tariffs as unilateral trade tools. The news also softened the US dollar slightly and led to renewed interest in risk assets.

Across Europe, most exchanges were open despite the religious holiday, with only a handful—such as those in Zurich, Riga and Tallinn—closed. The pan-European Stoxx 600 index opened 0.2% higher, with Germany’s DAX gaining 0.4%. London’s FTSE 100 was little changed, as energy and banking stocks weighed on broader sentiment.

Tech shares outperformed across European bourses, following upbeat guidance from US chipmaker Nvidia, which reported stronger-than-expected results after markets closed in New York on Wednesday. The company’s premarket rally helped lift Nasdaq futures and contributed to positive expectations for Wall Street’s open.

In the US, equity futures pointed to a solid start. The S&P 500 and Nasdaq 100 futures rose sharply, up 1.1% and 1.6% respectively, reflecting both the relief over trade policy uncertainty and ongoing strength in the technology sector. Dow futures were up around 0.6%.

US exchanges are open today for regular trading, with the New York Stock Exchange and Nasdaq operating during standard hours. Investors are likely to watch for further corporate earnings reports and any political response to the tariff ruling, which could set the tone for global markets heading into the weekend.

While the legal decision has brought short-term relief, analysts caution that trade policy remains a politically charged issue in the US, and future administrations may still seek alternative mechanisms to influence global trade flows. For now, however, equity markets appear to be embracing the legal clarity and using it as a springboard for optimism.

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