London (AFP) - Global equities diverged while the dollar dipped on Monday as uncertainty over Donald Trump’s tariffs gripped markets after the US Supreme Court struck down a large part of the president’s trade policy.

Meanwhile gold and oil prices rose amid concerns over a possible US strike on Iran.

The US Supreme Court on Friday ruled that Trump does not have the authority to impose tariffs under a 1977 law he has relied on to impose sudden levies on individual countries.

Trump responded by vowing to impose a global tariff of 10 percent under a different legal authority, before raising it to 15 percent on Saturday.

Wall Street and most major European equity markets retreated amid the higher economic and political uncertainty, but Asian markets got a boost as it works out as a tariff cut for several key exporting countries.

“Markets are still trying to get their heads around what ongoing trade policy uncertainty really means for the US economy, and by extension, the dollar,” said market analyst Fawad Razaqzada at FOREX.com.

But the switch to a 15 percent rate was favourable to several Asian countries who had higher tariffs on their goods in place, and this could be seen in Asian equities trading.

“The big winners from this are Brazil, China, India, Canada and Mexico, as all these countries had tariffs significantly above 15 percent,” said Trade Nation analyst David Morrison.

China, whose Shanghai stock market along with Tokyo were closed for holidays, urged the United States to cancel Trump’s plan for fresh unilateral tariffs.

The new 15 percent global duties are due to kick in on Tuesday, with exemptions for some products. They will expire in 150 days unless Congress votes to extend them.

European Union lawmakers put a key trade deal with the United States on hold, demanding clarity on the impact of the new tariffs.

Bloomberg meanwhile reported that Indian trade officials would postpone a trip to the United States aimed at finalising their interim agreement.

Asian investors welcomed the Supreme Court’s decision, which is seen as benefiting China and India, with tech firms the best performers.

Hong Kong’s stock market closed up more than two percent, with share prices of e-commerce titans Alibaba and JD.com surging more than three percent.

Seoul hit another record high thanks to big advances for chipmakers Samsung Electronics and SK hynix.

Singapore, Wellington, Taipei, Mumbai, Bangkok and Manila also rose. Sydney dipped.

Elsewhere on Monday, oil prices rose amid concerns about a possible US strike on Iran after Trump warned “bad things happen”, as he deployed warships, fighter jets and other military hardware to the Middle East.

“The panic-trade trinity of gold, oil and the VIX made a return to our screens today, all three rising as social media filled up with fresh updates on US deployments to the Middle East and reports emerging from all sides in the region,” said Chris Beauchamp, Chief Market Analyst at IG investment and trading platform.

The VIX, a measure of trading volatility, is often referred to as the fear gauge of the markets. It was up more than 15 percent on Monday.

- Key figures at around 1630 GMT -

New York - Dow: DOWN 1.4 percent at 48,939.10 points

New York - S&P 500: DOWN 0.9 percent at 6,844.68

New York - Nasdaq Composite: DOWN 1.1 percent at 22,641.41

London - FTSE 100: FLAT at 10,684.74 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,497.17 (close)

Frankfurt - DAX: DOWN 1.1 percent at 24,991.97 (close)

Hong Kong - Hang Seng Index: UP 2.5 percent at 27,081.91 (close)

Shanghai - Composite: Closed for a holiday

Tokyo - Nikkei 225: Closed for a holiday

Euro/dollar: UP at $1.1803 from $1.1788 on Friday

Pound/dollar: UP at $1.3505 from $1.3487

Euro/pound: UP at 87.40 pence from 87.37 pence

Dollar/yen: DOWN at 154. yen from 155.02 yen

Brent North Sea Crude: UP 0.8 percent at $71.90 per barrel

West Texas Intermediate: UP 0.9 percent at $67.09 per barrel

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