Tokyo, May 30 (AP) Asian shares were mostly lower Friday as uncertainty grew about what will happen next after a US court blocked many of President Donald Trump's sweeping tariffs.

Japan's benchmark Nikkei 225 lost 1.4 per cent in morning trading to 37,892.39. Government data showed Tokyo core inflation, excluding fresh food, accelerating to a higher-than-expected 3.6 per cent in May. Some analysts say that makes it more likely the Bank of Japan will raise interest rates.

Australia's S&P/ASX 200 was little changed, inching down less than 0.1 per cent to 8,404.50. South Korea's Kospi declined 0.6 per cent to 2,703.64, ahead of a presidential election set for next week.

Hong Kong's Hang Seng slipped 1.4 per cent to 23,235.94, while the Shanghai Composite shed 0.3 per cent to 3,353.07.

On Wall Street, the S&P 500 rose 0.4 per cent on Thursday after giving up more than half of an early gain. The Dow Jones Industrial Average added 117 points, or 0.3 per cent, and the Nasdaq composite rose 0.4 per cent.

It's a downshift after stocks initially leaped nearly 2 per cent in Tokyo and Seoul, where markets had the first chance to react to the ruling late Wednesday by the US Court of International Trade. The court said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports from around the world does not authorize the use of tariffs.

The ruling at first raised hopes in financial markets that a hamstrung Trump would not be able to drive the economy into a recession with his tariffs, which had threatened to grind down on global trade and raise prices for consumers already sick of high inflation.

But the tariffs remain in place for now while the White House appeals the ruling, and the ultimate outcome is still uncertain. The court's ruling also affects only some of Trump's tariffs, not those on foreign steel, aluminum and autos, which were invoked under a different law.

The Court of Appeals for the Federal Circuit on Thursday allowed the president to temporarily continue collecting the tariffs under the emergency powers law while he appeals the trade court's decision.

Trump “is still able to impose significant and wide-ranging tariffs over the longer-term through other means,” according to Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management.

On Wall Street, tech stocks led the way after Nvidia once again topped analysts' expectations for profit and revenue in the latest quarter.

The chip company has grown into one of the US market's largest and most influential stocks because of the frenzy around artificial-intelligence technology, and its 3.2 per cent rise was the strongest force by far lifting the S&P 500.

Best Buy fell 7.3 per cent even though it reported a stronger profit than expected. The electronics retailer also cut its forecasted ranges for revenue and profit over the full year on the assumption that “tariffs stay at the current levels,” Chief Financial Officer Matt Bilunas said.

All told, the S&P 500 rose 23.62 points to 5,912.17. The Dow Jones Industrial Average added 117.03 to 42,215.73, and the Nasdaq composite gained 74.93 to 19,175.87.

In the bond market, Treasury yields eased following some mixed reports on the economy. One said that the US economy likely shrunk by less in the first three months of the year than earlier estimated. Another said slightly more US workers applied for unemployment benefits last week than economists expected.

The yield on the 10-year Treasury fell to 4.43 per cent from 4.47 per cent late Wednesday.

In energy trading, benchmark US crude dropped 30 cents to USD 60.64 a barrel. Brent crude, the international standard, fell 31 cents to USD 63.84 a barrel.

In currency trading, the US dollar declined to 143.92 Japanese yen from 144.12 yen. The euro cost USD 1.1355, down from USD 1.1367. (AP) RD RD

Emergency powers used for tariffs face limits, prompting appeals and temporary continuation while authority is litigated. A federal trade court concluded that the International Emergency Economic Powers Act does not, by itself, authorize broad import tariffs, constraining the use of emergency powers for tariff imposition; tariffs based on other statutes remain unaffected. The ruling has been appealed, and an appellate court allowed temporary continuation of tariff collections under the emergency-powers claim while the appeal proceeds, leaving the legal authorization and final scope of those tariffs unresolved during litigation.