Australian Market Gains Ground, Led by Energy and Tech Amid China-US Trade Talks
The Australian share market advanced on Tuesday following a long weekend, with strength in energy and technology stocks helping offset weakness in the mining sector. Investor focus remained fixed on the US-China trade negotiations, which extended into a second day in London amid growing concerns over supply chain disruptions and global economic slowdown.
The S&P/ASX 200 index rose 0.4% to 8,549.1 points by 0032 GMT, partially rebounding from a 0.3% loss recorded last Friday.
Energy Sector Surges on Oil Rally
Energy stocks were among the top performers, climbing as much as 2%, their highest level in more than three months. The rally followed a rise in global oil prices, buoyed by a weaker US dollar and supply concerns tied to OPEC+ production dynamics and Canadian wildfire disruptions.
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Woodside Energy rose 1.5%
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Santos Ltd gained 1.9%
Technology Stocks Track Wall Street Gains
Mirroring strength in US tech markets, Australian tech firms posted moderate gains:
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The technology sub-index advanced 0.6%
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WiseTech Global rose 0.5%
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Xero, the ASX-listed accounting software giant, climbed 0.9%
This upward momentum reflects optimism about global tech valuations and steady earnings resilience.
Miners Tread Water Amid Iron Ore Pressures
The mining sector edged 0.1% lower, constrained by softening iron ore prices and signs of deeper producer deflation in China, Australia’s largest export market.
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BHP dipped 0.1%
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Rio Tinto gained 0.4%
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Fortescue Metals added 0.5%
Investor sentiment remains cautious as trade tensions between the US and China escalate from tariff disputes to restrictions on rare earths, potentially upending global supply chains.
Gold Stocks Slide for Fourth Straight Session
Gold miners were a notable drag on the index, with the sub-index down 2.2%, marking a fourth consecutive daily loss and touching a one-week low. The fall came despite broader market risk aversion, as profit-taking and volatility in global gold prices weighed on the sector.
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Northern Star Resources declined 0.5%
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Evolution Mining plunged 4.4%
Banks Support Broader Market Gains
Australian financials added 0.4%, with major banks showing resilience despite mixed performance:
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Commonwealth Bank of Australia (CBA) slipped 0.5%
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Other major lenders closed in the green
New Zealand Market Also Posts Modest Gains
Across the Tasman Sea, New Zealand’s S&P/NZX 50 gained 0.3% to 12,577.11, tracking broader regional optimism and steady performance in local equities.
Outlook Hinges on Trade Outcomes
Market participants remain cautiously optimistic that a resolution—or at least de-escalation—of the US-China trade dispute could revive demand for Australian exports, especially iron ore and LNG. However, any negative turn in the talks could renew downward pressure on mining and industrials.
For now, gains in energy, tech, and banking are holding the ASX afloat even as investors await more clarity on global macroeconomic dynamics.
