A U.S. court ruling against most of Trump’s tariffs and mixed China PMI data set the tone for Asian trade. Regional equities were uneven, with China and Hong Kong steadily higher, but Japan’s Nikkei sliding more than 2%, while FX stayed subdued.

Weekend headlines saw a U.S. Federal Appeals Court rule that most of Trump’s tariffs are illegal — a setback for his trade plans, though the case is expected to be appealed.

From China, official August PMIs pointed to continued weakness: manufacturing contracted for a fifth month (49.4 vs. 49.3 prior), while non-manufacturing activity edged higher (50.3), lifting the composite to 50.5. The private Rating Dog (formerly Caixin)/S&P Global PMI, released Monday, painted a brighter picture, surprising at 50.5 (exp. 49.5; prior 49.5) and marking a return to expansion.

In markets, USD/JPY held a circa 146.90–147.35 range, while other majors saw muted trade. Equities were mixed across the region, with China and Hong Kong showing resilience but Japan’s Nikkei 225 tumbling more than 2% at one stage.

Asia-Pac stocks:

  • Japan (Nikkei 225) -1.9%
  • Hong Kong (Hang Seng) +2%
  • Shanghai Composite +0.5%
  • Australia (S&P/ASX 200) -0.7%

Note - it's a US and Canadian holiday on Monday.

Source: Forex Live