Dubai Telegraph - Stocks diverge, dollar down over Trump tariffs uncertainty

The court on Friday ruled that Trump does not have the authority to impose tariffs under a 1977 law he has relied on to impose sudden levies on individual countries

Trump responded by vowing to impose a global tariff of 10 percent under a different legal authority, before raising it to 15 percent on Saturday.

"In the US, the uncertainty has hit (stocks) futures on Wall Street," in addition to some losses across Europe, noted Victoria Scholar, head of investment at Interactive Investor.

Asian chipmakers earlier rallied on the news, boosting the Hong Kong exchange, while European stock markets travelled in different directions approaching the mid-session point. Frankfurt shares were lower, with Paris and London little changed.

China, whose Shanghai stock market along with Tokyo were closed for holidays, urged the United States to cancel Trump's plan for fresh unilateral tariffs.

The new 15 percent global duties are due to kick in on Tuesday, with exemptions for some products. They will expire in 150 days unless Congress votes to extend them.

European Union lawmakers said they planned to freeze a key trade deal that had been struck with the United States after Trump's tariffs blitz took hold last year.

Lawmakers from different parliamentary groups told AFP that they supported putting the deal on ice until there is more clarity on what the court ruling means for the EU.

Bloomberg meanwhile reported that Indian trade officials would postpone a trip to the United States aimed at finalising their interim agreement.

Asian investors welcomed the Supreme Court's decision, which is seen as benefiting China and India, with tech firms the best performers.

Hong Kong's stock market closed up more than two percent, with share prices of e-commerce titans Alibaba and JD.com surging more than three percent.

Seoul hit another record high thanks to big advances for chipmakers Samsung Electronics and SK hynix.

Singapore, Wellington, Taipei, Mumbai, Bangkok and Manila also rose. Sydney dipped.

The strong start to the week followed gains Friday on Wall Street, where the tariffs ruling overshadowed data showing that the US economy grew much slower than expected in the fourth quarter of 2025, when it was hit by the extended government shutdown.

Elsewhere on Monday, oil prices dropped on hopes for an Iran nuclear deal.

That has tempered last week's concerns about a possible US strike on the country after Trump warned "bad things happen", as he deployed warships, fighter jets and other military hardware to the Middle East.

- Key figures at around 1115 GMT -

London - FTSE 100: UP 0.1 percent at 10,692.36 points

Paris - CAC 40: UP 0.1 percent at 8,524.10 (close)

Frankfurt - DAX: DOWN 0.4 percent at 25,150.37 (close)

Hong Kong - Hang Seng Index: UP 2.5 percent at 27,081.91 (close)

Shanghai - Composite: Closed for a holiday

Tokyo - Nikkei 225: Closed for a holiday

New York - Dow: UP 0.5 percent at 49,625.97 (close)

Euro/dollar: UP at $1.1791 from $1.1788 on Friday

Pound/dollar: UP at $1.3508 from $1.3487

Euro/pound: DOWN at 87.32 pence from 87.37 pence

Dollar/yen: DOWN at 154.83 yen from 155.02 yen

Brent North Sea Crude: DOWN 0.6 percent at $70.87 per barrel

West Texas Intermediate: DOWN 0.6 percent at $66.06 per barrel

Y.Al-Shehhi--DT