Asian Shares Mixed As Supreme Court Grants Trump Immunity

(RTTNews) - Asian stocks ended mixed on Tuesday as investors pondered what the U.S. Supreme Court's immunity decision meant for former president Donald Trump.

The dollar gained traction and yields hit a one-month high after the Supreme Court ruled that presidents have absolute immunity from prosecution for core official acts.

President Joe Biden said the high court's ruling had undermined the rule of law.

There's growing talk about a potential Trump presidency leading to a steeper yield curve as growth will likely slow and inflation quicken under such a scenario, according to Morgan Stanley. Barclays and Nomura also issued calls to factor in a Trump win.

The dollar's strength weighed on gold prices in Asian trading while oil maintained positive momentum to trade around two-month highs due to concerns about conflict in the Middle East and expectations of strong U.S. demand.

Chinese and Hong Kong markets advanced after data showed the downturn in China's residential real estate sector slowed further in June.

China's Shanghai Composite index finished marginally higher at 2,997.01 after a choppy session. Hong Kong's Hang Seng index rose 0.29 percent to 17,769.14 as trading resumed after a holiday.

Japanese markets led regional gains, with exporters surging as the yen hit a new 37-year low versus the dollar.

The Nikkei average rallied 1.12 percent to 40,074.69, closing above the 40,000 threshold for the first time in three months. The broader Topix index settled 1.15 percent higher at 2,856.62.

Nintendo added 1.4 percent after the gaming giant said the best way to stop scalping of the Switch's successor is to make enough of them in the first place.

Seoul stocks fell notably as investors awaited Fed Chair Jerome Powell's comments and the release of key U.S. economic data for more clarity on the Fed's rate trajectory.

The Kospi average dipped 0.84 percent to 2,780.86, snapping a two-session winning streak.

Australian markets ended lower as the minutes of the Reserve Bank's June policy meeting showed that the "board judged the case for holding rates steady stronger than for hiking."

The benchmark S&P/ASX 200 dropped 0.42 percent to 7,718.20, with miners and financials pacing the declines. The broader All Ordinaries index slipped 0.41 percent to 7,959.70.

Rising oil prices boosted energy stocks, with Woodside Energy rallying 3.1 percent. Liontown Resources soared 7.3 percent on the back of a $250 million investment from LG Energy Solution.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended the session down 0.11 percent at 11,776.73.

U.S. stocks closed higher overnight as data showed manufacturing contracted for a third straight month in June and prices paid by manufacturers dropped to a six-month low - adding to bets the Fed will start reducing interest rates in September.

The Dow edged up 0.1 percent, the S&P 500 added 0.3 percent and the tech-heavy Nasdaq Composite surged 0.8 percent.