ASX Edges Lower as Miners Retreat, Tech Sector Lifts on Global Cues

May 01, 2025 11:46 AM AEST | By Team Kalkine Media

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ASX Edges Lower as Miners Retreat, Tech Sector Lifts on Global Cues — Image source: shutterstock

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Highlights

Miners drag ASX despite a positive tech-driven Wall Street turnaround

Iron ore weakness and profit booking pressure resource and bank stocks

NextDC and WiseTech shine amid upbeat US tech earnings

The Australian share market opened on a softer note Thursday, breaking a five-day winning streak, as weakness in the mining sector overshadowed optimism from Wall Street's overnight recovery. The benchmark S&P/ASX 200 Index slipped 0.1 per cent, down 10.5 points within the first 40 minutes of trade, with the All Ordinaries showing a similar marginal decline.

This came despite a late-session reversal in the US where the S&P 500 bounced back from a 2 per cent slide to finish in positive territory. The turnaround was largely driven by easing inflation concerns and upbeat corporate earnings. Key inflation data, a surge in consumer spending, and signs of US diplomatic efforts to reduce trade tensions with China improved investor sentiment.

The tech sector benefited from this momentum. Microsoft and Meta reported stronger-than-expected earnings, lifting hopes for broader resilience in global tech. This translated to gains for Australian tech names as well. Notably, NextDC (ASX:NXT) rallied 4.3 per cent, while WiseTech (ASX:WTC) added 2.8 per cent, providing some uplift to the local bourse.

However, heavy losses in the mining space dampened broader market sentiment. Iron ore prices continued to slide amid fresh concerns over China’s economic outlook, particularly its factory activity hitting its lowest level since September. This put pressure on major iron ore exporters. BHP Group (ASX:BHP) fell 2.2 per cent and Rio Tinto (ASX:RIO) declined by 1.4 per cent as the Singapore iron ore contract dipped another 0.8 per cent.

Banking stocks also came under pressure due to profit-taking after recent strong performance. Commonwealth Bank (ASX:CBA) eased 0.3 per cent after approaching an all-time high, with National Australia Bank (ASX:NAB), Westpac (ASX:WBC), and ANZ (ASX:ANZ) all edging lower.

Meanwhile, in the consumer space, Woolworths (ASX:WOW) rose 1.3 per cent after posting a surge in e-commerce sales to $2.2 billion for the quarter, reflecting the ongoing strength in retail digital transformation.

For investors focusing on consistent income amid market volatility, opportunities in ASX dividend stocks may offer steady yields. Additionally, market watchers tracking sectoral movements and index shifts can explore trends within the ASX200, especially as volatility returns to the resource-heavy benchmark.

Despite the modest decline, the market remains closely aligned with global developments, especially around earnings, inflation data, and China's economic indicators.

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