Australian Shares Extend Gains on Trade Optimism

The Australian stock market continued its upward trend for a second day on Thursday, propelled by gains in the mining sector. Investor sentiment was buoyed by renewed optimism regarding progress in the trade relationship between the United States and China.

The S&P/ASX 200 index increased by 0.4%, reaching 7,955.6 points by 0023 GMT. This follows a strong performance on Wednesday, where the benchmark index closed 1.3% higher. Recent comments from the US Treasury Secretary suggested that high tariffs on Chinese goods might not be sustainable in the long run.

Furthermore, US President Donald Trump stated on Tuesday that he intends to retain Federal Reserve Chair Jerome Powell, despite previous criticisms. Trump also indicated that a potential agreement with Beijing could lead to a significant reduction in tariffs on Chinese products.

Market Analyst Comments

According to Kyle Rodda, a senior financial market analyst, “The overall market outlook appears more positive as the US administration seems to be moderating its trade policies.”

Sector Performance
  • Miners: The mining sector, which has substantial ties to China, Australia’s largest trading partner, saw a 1% increase, mirroring a rise in iron ore prices. Key players such as BHP Group, Rio Tinto, and Fortescue experienced gains of 0.9%, 0.7%, and 1.7%, respectively.
  • Financials: The financial sub-index also performed well, rising by 0.5%. Shares of the “Big Four” banks showed increases ranging from 0.2% to 0.7%.
  • Technology: Technology stocks followed the positive trend of their international counterparts, gaining 1%.
  • Energy: In contrast, energy stocks declined by 1.3%, influenced by a decrease in oil prices. Sector leaders Woodside and Santos saw their shares drop by 2.1% and 1.4%, respectively.
Company Highlights
  • Newmont: Australian-listed shares of Newmont rose by 4.1%, making it one of the top performers on the benchmark, driven by first-quarter profits that surpassed Wall Street expectations.
  • Liontown Resources: Shares of Liontown Resources increased by 3.6% after the company reported a 17% increase in revenue for the quarter ending in March.

New Zealand’s S&P/NZX 50 index also experienced gains, rising by 0.6% to reach 12,026.4 points.