TOKYO - Stocks slipped in Asia on Friday and the US dollar dropped with Treasury yields as investors digested an appeals court decision to keep President Donald Trump's tariffs in effect, a day after markets rallied on a ruling to block most of them.

Japan's Nikkei attracted sellers, following a nearly 2 percent rally on Thursday, with moves in the exporter-heavy index exacerbated by the ebb and flow in demand for the safe-haven yen.

The United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated Trump's duties on Thursday while it considers the government's appeal. On Wednesday, a little-known trade court blocked on the ground that Trump had overstepped his authority, and tariffs were the jurisdiction of Congress, not the president.

Either way, senior Trump administration officials said they were undeterred and expected either to prevail on appeal or to employ other powers to ensure the tariffs remain.

The Nikkei dropped 1.1 percent after the yen appreciated as much as 2 percent from its low on Thursday to change hands as strong as 143.45 per dollar. A stronger yen reduces the value of overseas revenues for Japanese companies.

South Korea's KOSPI fell 0.9 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.6 percent.

"Trump's trade agenda remains alive and kicking, with the legal battle adding yet another layer of uncertainty," said Rodrigo Catril, senior FX strategist at National Australia Bank.

"The only thing that looks more certain is more uncertainty," which will lead to additional delays in investment decisions and hiring, he said.

US S&P 500 futures fell 0.1 percent. The cash index rose 0.4 percent overnight, but that was largely the effect of resilient Nvidia financial results from after the market close on Wednesday, to which Asian shares already had a chance to react.

Pan-European STOXX 50 futures edged very slightly lower.

The 10-year US Treasury yield was steady at 4.42 percent on Friday, following a 5.5 basis point slide on Thursday.

Both Brent and US West Texas Intermediate crude eased 0.3 percent on Friday, to $63.95 and $60.75 per barrel, respectively.

Despite the uncertainty injected by the courtroom drama, the Trump administration said negotiations with top trading partners continue unabated. Treasury Secretary Scott Bessent noted during an interview with Fox News that he is scheduled to have talks with a high-level Japanese delegation later on Friday in Washington.

Trump had already paused his "Liberation Day" tariff rates on most trade partners for 90 days to July 9 and set a baseline rate of 10 percent in the meantime in order to give time for some of them to hammer out deals.