AUS
NZ
UK
CA
USA
IND
Highlights
- S&P/ASX 200 rises on global rate cuts and China stimulus hopes.
- Tech and banking stocks soar; energy sector lags.
- Block Inc drops despite strong profits.
The Australian share market showed positive momentum in the early afternoon, mirroring the gains of US indexes. Tech stocks led the rally, with market optimism fueled by global central banks’ rate cuts and anticipation of further stimulus measures from China. The S&P/ASX 200 rose by 82.4 points, reaching 8308.7, while all sectors except energy were in the green. Technology stocks, in particular, enjoyed a boost, with family app Life360 (ASX:360) reaching a new high following a target price hike by UBS.
In the banking sector, Commonwealth Bank (ASX:CBA) saw its stock hit a record high of $149.61. Other major banks also experienced positive movement, with Westpac (ASX:WBC) rising nearly 2%. ANZ (ASX:ANZ) saw a modest increase of 1.2% despite an 8% drop in its net profit and lower dividends for fiscal 2024. CEO Shayne Elliott acknowledged the competitive pressure within the banking sector, which remains intense.
The positive trend was further supported by developments in the US. Wall Street saw a strong performance, with the S&P 500 rising 0.9%, the Dow Jones remaining flat, and the Nasdaq gaining 1.5%. The Federal Reserve’s decision to lower its benchmark interest rate by a quarter-point provided additional optimism.
On the Asian front, markets eagerly awaited news from China’s National People’s Congress Standing Committee, which is expected to unveil new stimulus measures. This news boosted iron ore stocks, with BHP (ASX:BHP) rising by 1.3%, Rio Tinto (ASX:RIO) adding 1.7%, and Fortescue (ASX:FMG) up 0.9%. Gold miners also surged as gold prices bounced back above $US2,700 an ounce, with St Barbara (ASX:SBM) and Regis Resources (ASX:RRL) gaining more than 3%.
Biotech stocks saw movement as well, with Neuren Pharmaceuticals (ASX:NEU) rising 14.3% after reporting strong sales for its Daybue drug in the US.
In company news, Afterpay-owner Block Inc (ASX:SQ) reported a 19% increase in profits for the September quarter, reaching $US2.25 billion. Despite this growth, the company missed market expectations, causing its shares to tumble by 6.7%. Meanwhile, REA Group (ASX:REA) reported a 21% increase in quarterly revenue, with shares edging up by 0.2% to $232.20.
Other notable movers included News Corp (ASX:NWS), which saw shares rise 1.9% after reporting strong revenue and earnings growth driven by real estate investments. Mayne Pharma (ASX:MYX) surged 14% after confirming reports of potential acquisition interest. Vulcan Energy (ASX:VUL) saw a 5.2% increase following the commencement of lithium hydroxide production in Germany.
The ASX’s positive performance highlights the global market’s optimism, driven by central bank actions and expectations of stimulus measures from China.
