Asia-Pacific markets mostly fell Monday as investors assess a U.S. federal appeals court ruling that most of U.S. President Donald Trump’s “reciprocal tariffs are illegal.”

The U.S. Court of Appeals for the Federal Circuit held Friday ruled that Trump had overstepped his presidential authority by imposing levies on virtually every country in the world as part of his April 2 “liberation day” announcement.

Investors will also be assessing the developments in India and China relations, after leaders from both countries agreed that they are development partners, not rivals during a two-day meeting of the Shanghai Cooperation Organization regional security bloc. Chinese President Xi Jinping is expected to deliver a speech at the summit.

Chinese shares will be in focus, with investors looking out for movements in Alibaba Group after the stock surged nearly 13% on Wall Street on Friday following a better-than-expected bottom line in its June quarter.

China’s Ratingdog manufacturing data for August is set to be released later in the day. Economists polled by Reuters forecast a reading of 49.7, compared to 49.5 the month before. Data released Sunday showed that the country’s manufacturing PMI data came in at 49.4 in August, compared to 49.3 the month before.

Futures for Hong Kong’s Hang Seng index stood at 25,319, pointing to a stronger open compared with the HSI’s last close of 25,077.62.

In Japan, the Nikkei 225 declined by 0.92% while the broader Topix index was flat.

Over in South Korea, the Kospi index fell 0.85%, while the small-cap Kosdaq lost 0.74%.

Australia’s S&P/ASX 200 benchmark retreated 0.17%.

Over in Wall Street, stocks fell Friday as new inflation data showed rising prices was still a risk heading into the new month.

The broad-based S&P 500 ended the day 0.64% lower at 6,460.26, but still scored its fourth winning month in a row. The Nasdaq Composite shed 1.15% to finish at 21,455.55, while the Dow Jones Industrial Average lost 92.02 points, or 0.20%, to settle at 45,544.88.

U.S. markets are closed Monday for the Labor Day public holiday.

— CNBC’s Sean Conlon and Brian Evans contributed to this report.