FX.co ★ Asian Shares Mixed As Supreme Court Grants Trump Immunity

Asian stocks experienced mixed outcomes on Tuesday amidst investor contemplation regarding the U.S. Supreme Court's recent decision on presidential immunity concerning former President Donald Trump.

The U.S. dollar gained momentum, with yields reaching a one-month peak following the Supreme Court's declaration that presidents possess absolute immunity from prosecution for principal official acts.

President Joe Biden criticized the ruling, asserting it undermined the rule of law.

Speculation is increasing about the implications of a potential Trump presidency, which some analysts, including Morgan Stanley, suggest could result in a steeper yield curve due to anticipated slower growth and increased inflation. Both Barclays and Nomura have advised factoring in the possibility of a Trump win.

The dollar's strength exerted downward pressure on gold prices in Asian markets, while oil sustained its upward trend, trading at roughly two-month highs. This was driven by concerns over Middle Eastern conflicts and robust U.S. demand expectations.

Notably, Chinese and Hong Kong markets advanced as data indicated a continued slowdown in the downturn of China’s residential real estate sector in June.

The Shanghai Composite Index concluded slightly higher at 2,997.01 after a volatile session, while the Hang Seng Index in Hong Kong increased by 0.29 percent to 17,769.14, marking its first session post-holiday hiatus.

Japanese markets led regional advancements, buoyed by exporters as the yen reached a new 37-year low against the dollar. The Nikkei Average climbed 1.12 percent to 40,074.69, surpassing the 40,000 mark for the first time in three months, with the broader Topix Index also rising 1.15 percent to 2,856.62.

Nintendo shares rose by 1.4 percent following the company's announcement that the best approach to counteract scalping of the Switch's successor involves ensuring sufficient production.

Conversely, Seoul stocks saw a notable decline, as investors awaited remarks from Fed Chair Jerome Powell and key U.S. economic data releases for clearer insights on the Federal Reserve’s rate path. The Kospi Index dropped 0.84 percent to 2,780.86, ending a two-day winning streak.

Australian markets closed lower. The minutes from the Reserve Bank of Australia's June policy meeting revealed a stronger case for holding rates steady than for increasing them. The S&P/ASX 200 fell 0.42 percent to 7,718.20, with declines led by miners and financials. The broader All Ordinaries index decreased by 0.41 percent to 7,959.70.

Rising oil prices provided a boost to energy stocks, with Woodside Energy rallying 3.1 percent. Meanwhile, Liontown Resources soared 7.3 percent following a $250 million investment from LG Energy Solution.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX-50 Index concluded the session slightly down by 0.11 percent at 11,776.73.

In the U.S., stocks closed higher overnight. Data showed manufacturing contracted for the third consecutive month in June, while prices paid by manufacturers reached a six-month low, bolstering predictions that the Federal Reserve might start reducing interest rates in September. The Dow increased by 0.1 percent, the S&P 500 by 0.3 percent, and the Nasdaq Composite surged 0.8 percent.