Investors reacted by embracing equities, and Japan’s Nikkei quickly rose 1.7 per cent, while South Korean shares gained 1.8 per cent to a nine-month high.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.5 per cent, while Chinese blue chips firmed 0.6 per cent.
The ripples were felt worldwide as EUROSTOXX 50 futures rose 1.3 per cent, while FTSE futures gained 0.8 per cent and DAX futures 1.1 per cent.
NVIDIA RELIEVES
S&P 500 futures climbed 1.6 per cent, while Nasdaq futures rose 2.0 per cent. The latter had already been lifted by relief over earnings from Nvidia, which beat sales estimates.
The chipmaker and artificial intelligence (AI) diva also projected strong revenues for the current quarter, sending its shares up 4.4 per cent after hours.
That news helped offset a Financial Times report that the White House had ordered US firms that offer software used to design semiconductors to stop selling their services to Chinese groups.
The New York Times separately reported the US had suspended some sales to China of critical US technologies, including those related to jet engines, semiconductors and certain chemicals.
The news of the court decision hit traditional safe haven currencies, lifting the dollar 0.7 per cent on the Swiss franc to 0.8327. It gained 0.7 per cent on the Japanese yen to ¥145.86, while the euro dipped 0.4 per cent to US$1.1245.
Yields on 10-year US Treasuries rose 3 basis points to 4.51 per cent and markets further shaved the chance of a Federal Reserve rate cut anytime soon.
Minutes of the last Fed meeting showed “almost all participants commented on the risk that inflation could prove to be more persistent than expected” due to Trump’s tariffs.
A rate cut in July is now seen as just a 22 per cent chance, while September has come into around 60 per cent, having been more than fully priced a month ago.
In commodity markets, gold slipped 0.5 per cent to US$3,271 an ounce.
Oil prices extended a rally first begun on supply concerns as OPEC+ agreed to leave their output policy unchanged and as the US barred Chevron from exporting Venezuelan crude.
Brent rose 96 cents to US$65.87 a barrel, while US crude climbed US$1 to US$62.84 per barrel.
