SYDNEY — In Asian markets on Thursday, shares and Wall Street futures saw an upswing after a U.S. federal court halted President Donald Trump’s proposed “Liberation Day” tariffs, boosting the dollar against safe haven currencies.

The Court of International Trade, based in Manhattan and relatively obscure, deemed that Trump exceeded his powers by imposing broad tariffs on April 2 against U.S. trade partners.

The White House promptly announced an appeal, with the case potentially reaching the Supreme Court. For now, this development has provided optimism that Trump may reconsider the severe tariff levels he had planned.

“It’s long been suggested that the emergency powers Trump has used to implement tariffs were unconstitutional and that the power to enact tariffs sits with Congress,” said Kyle Rodda, a senior financial analyst at Capital.com.

“Should the markets get their way, the courts could delay and then deny these tariffs, removing one massive risk and undoubtedly stoking risk appetite.”

It could also encourage U.S. trading partners to stall any trade negotiations they are having with the White House while waiting to see how the case is resolved.

However, analysts at Goldman Sachs noted the order does not block sectoral levies and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs.

“This ruling represents a setback for the administration’s tariff plans and increases uncertainty but might not change the final outcome for most major U.S. trading partners,” analyst Alec Phillips wrote in a note.

Investors reacted by embracing equities and Japan’s Nikkei quickly rose 1.7%, while South Korean shares gained 1.8% to a nine-month top.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.5%, while Chinese blue chips firmed 0.6%.

The ripples were felt worldwide as EUROSTOXX 50 futures rose 1.3%, while FTSE futures gained 0.8% and DAX futures 1.1%.

S&P 500 futures climbed 1.6%, while Nasdaq futures rose 2.0%. The latter had already been lifted by relief over earnings from Nvidia, which beat sales estimates.

The chipmaker and AI diva also projected strong revenue for the current quarter, sending its shares up 4.4% after hours.

That news helped offset a Financial Times report that the White House had ordered U.S. firms that offer software used to design semiconductors to stop selling their services to Chinese groups.

The New York Times separately reported the United States had suspended some sales to China of critical U.S. 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% on the Swiss franc to 0.8327. It gained 0.7% on the Japanese yen to 145.86 yen, while the euro dipped 0.4% to $1.1245.

Yields on 10-year Treasuries rose 3 basis points to 4.51% 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% chance, while September has come into around 60% having been more than fully priced a month ago.

In commodity markets, gold slipped 0.5% to $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 U.S. barred Chevron from exporting Venezuelan crude.

Brent rose 96 cents to $65.87 a barrel, while U.S. crude climbed $1 to $62.84 per barrel.