European Markets Gain as Asian Stocks Decline Amid Tariff Uncertainty

TOKYO (AP) -- European stock markets experienced gains on Friday, while Asian indices largely closed lower amidst heightened uncertainty regarding the future of tariffs imposed by the U.S. government. The CAC 40 in France rose by 0.2% to reach 7,796.14, while Germany's DAX climbed 0.6% to 24,122.42. The FTSE 100 in Britain also saw an increase of 0.6%, finishing at 8,771.71. In contrast, U.S. stock futures indicated a slight downturn, with Dow futures slipping 0.1% to 42,217.00 and S&P 500 futures also down by 0.1% to 5,914.75.

In Asia, Japan's Nikkei 225 index fell 1.2%, ending the day at 37,965.10. Recent government data revealed that core inflation in Tokyo, excluding fresh food, surged to an unexpected 3.6% in May, leading some analysts to suggest a potential interest rate hike by the Bank of Japan. Meanwhile, Australia's S&P/ASX 200 index rose 0.3% to 8,434.70, whereas South Korea's Kospi index dropped by 0.8% to 2,697.67, with a presidential election approaching next week.

Hong Kong's Hang Seng index decreased by 1.2% to 23,289.77, and the Shanghai Composite index declined by 0.5% to 3,347.49. Earlier in the week, a U.S. Court of International Trade ruled that the 1977 International Emergency Economic Powers Act, which was cited by President Donald Trump to justify significant tariff increases on imports, does not authorize such actions.

This court ruling initially sparked optimism in financial markets, as it suggested that President Trump might be restrained from further actions that could negatively impact the economy and contribute to a recession. The tariffs had raised concerns about their potential to stifle global trade and exacerbate inflation, which consumers are already struggling with.

Despite the court's ruling, the tariffs remain in effect as the White House prepares to appeal the decision. It is important to note that the ruling only pertains to a subset of Trump's tariffs and does not impact those imposed on foreign steel, aluminum, and automobiles, which were enacted under different legal provisions. Additionally, the Court of Appeals for the Federal Circuit permitted the continuation of tariff collection under emergency powers while the case is under appeal.

In the energy sector, benchmark U.S. crude oil prices rose by 24 cents to $61.18 per barrel, while Brent crude, the international benchmark, increased by 23 cents to $64.38 per barrel. In currency markets, the U.S. dollar fell against the Japanese yen, trading at 143.96 yen compared to 144.12 yen previously. The euro traded at $1.1342, down from $1.1367.