AUS
NZ
UK
CA
USA
IND
Highlights
- ASX opens higher after Wall Street's positive close
- Energy and banking sectors lift, tech stocks under pressure
- Block (ASX:SQ2) plunges after earnings miss and guidance cut
The Australian sharemarket started the day on a positive note, tracking overnight gains from Wall Street, even as weak corporate forecasts kept overall investor sentiment cautious.
In early trade, the benchmark ASX200 index edged up 12.80 points, or 0.16%, reaching 8,158.40. Gains were seen primarily in the energy and banking sectors, which helped offset losses in technology, materials, and consumer sectors.
Among the big names in the mining sector, BHP Group (ASX:BHP) was trading lower despite strong recent commodity prices. On the other hand, Rio Tinto (ASX:RIO) and Fortescue Metals Group (ASX:FMG) recorded modest gains, reflecting broader resilience in the sector.
Energy shares saw a boost, with Woodside Energy (ASX:WDS) and Santos (ASX:STO) both up around 0.5%, as crude oil prices rebounded following earlier declines. A stronger outlook for global demand contributed to the gains in these major oil and gas players.
The banking sector added to the market’s upward momentum. Each of the Big Four banks traded higher, providing a solid foundation for the morning's advance. Financials continue to show stability amid mixed economic indicators both locally and abroad.
However, local tech stocks faced significant pressure. Earnings reports from major U.S. technology firms disappointed investors, contributing to a cautious tone in the sector. Block (ASX:SQ2), which is dual-listed in Australia and the U.S., plunged more than 26% in early trade. The payments company missed its earnings expectations and lowered its forecast, sparking a sharp decline in investor confidence.
The broader tech sector also responded to weaker-than-expected earnings from U.S. heavyweights like Amazon and Apple, which weighed on market sentiment despite the general lift on Wall Street.
Overnight in the U.S., all three major indices ended in positive territory, although economic data continued to show signs of strain. Jobless claims data suggested a potential uptick in layoffs, while manufacturing figures pointed to ongoing contraction in April.
Investors are keeping a close eye on ASX dividend stocks, particularly in defensive sectors, as global economic signals remain mixed and inflationary pressures persist.
With earnings season continuing and global economic uncertainties in play, sector rotation and defensive positioning remain key themes influencing market movements on the ASX.
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