Singapore’s STI, Asia markets rise after US court blocks Trump’s reciprocal tariffs

[SINGAPORE] Singapore stocks rose on Thursday (May 29) morning, after a US trade court on Wednesday (May 28) blocked US President Donald Trump’s “Liberation Day” tariffs from going into effect.

As at 9.12 am, the Straits Times Index (STI) opened 0.2 per cent or 7.56 points higher at 3,919.48. Across the broader market, gainers outnumbered losers 106 to 56 after 102.5 million securities worth S$161 million changed hands.

On Wednesday, a US trade court had blocked US President Donald Trump’s “Liberation Day” tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

Among Singapore stocks, the trio of local banks were mixed at the open. DBS shed 0.7 per cent or S$0.30 to S$44.85. UOB declined 0.4 per cent or S$0.15 to S$35.80. OCBC was up 0.3 per cent or S$0.05 at S$16.38.

The most actively traded counters volume included energy and oil company Rex International, opening 3.2 per cent or S$0.004 higher at S$0.13, with 8.1 million securities transacted.

Golden Agri-Resources was the most actively traded counter by volume, rose 2.1 per cent or S$0.005 to S$0.245, after 11.5 million shares changed hands. Other actively traded counters included Genting Singapore, which opened flat at S$0.70, and taxi operator ComfortDelGro, which opened flat at S$1.42.

Other Asia markets also rose in response in early morning trade, with Japan’s Nikkei jumping 1.25 per cent and South Korea’s Kospi rising 1.35 per cent. Australia’s ASX 200 edged marginally up 0.12 per cent.

US futures jumped, with Dow futures soaring more than 500 points, and futures tied to the S&P 500 rising 1.5 per cent.

The Manhattan-based Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president’s emergency powers to safeguard the US economy, according to Reuters.

“The court does not pass upon the wisdom or likely effectiveness of the president’s use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it,” a three-judge panel said in the decision, according to the Reuters report.