ASX Hits New High as Mining and Real Estate Stocks Surge

January 31, 2025 11:07 AM AEDT | By Team Kalkine Media

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ASX Hits New High as Mining and Real Estate Stocks Surge — Image source: shutterstock

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Highlights:

Mining stocks lead gains: BHP Group (ASX:BHP), Rio Tinto (ASX:RIO), and Fortescue Metals Group (ASX:FMG) rose amid strong sector performance.

Wall Street momentum: The ASX followed a broad rally in US markets, despite late-session losses in tech stocks.

Interest rate expectations: National Australia Bank (ASX:NAB) joined major banks in forecasting a rate cut from the Reserve Bank of Australia (RBA) in February.

The Australian share market reached a fresh record high, supported by a strong performance from mining and real estate stocks. The S&P/ASX 200 rose 0.4% or 37 points to 8530.70, building on gains from the previous session. The All Ordinaries Index opened 0.5% higher. The Australian dollar declined 0.5% to US62.06¢, hovering near its lowest level this week.

Wall Street’s overnight rally provided positive momentum, with the S&P 500 rising 0.5%. However, late-session losses in technology stocks tempered gains after US President Donald Trump reiterated plans to impose a 25% tariff on imports from Mexico and Canada starting February 1. Nvidia closed higher but remains down 15.7% over the past week.

The materials sector was the best performer on the ASX, climbing 1.4%. BHP Group (ASX:BHP) gained 1.2%, Rio Tinto (ASX:RIO) rose 0.9%, and Fortescue Metals Group (ASX:FMG) added 0.9%, extending the sector’s strong momentum.

Real estate stocks also posted strong gains. Goodman Group (ASX:GMG) advanced 2%, Stockland (ASX:SGP) climbed 1.5%, and Dexus (ASX:DXS) gained 2.3%. The sector benefited from growing expectations that the Reserve Bank of Australia will move towards an interest rate cut.

Financial stocks were mixed. National Australia Bank (ASX:NAB) joined other major banks in predicting that the RBA will cut interest rates in February. The move comes as inflation concerns persist, and markets increasingly anticipate monetary policy adjustments.

Energy stocks remained relatively steady despite fluctuations in global oil prices. Woodside Energy (ASX:WDS) and Santos (ASX:STO) saw modest movements, reflecting ongoing uncertainty in commodity markets.

With multiple sectors contributing to the ASX’s upward momentum, the market continues to build on strong gains, reinforcing optimism about economic resilience and future policy shifts.

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