AUS
NZ
UK
CA
USA
IND
Highlights
- ASX drops after latest China tariff hike
- All 11 sectors open in the red
- Gold producers rally amid market volatility
The Australian Securities Exchange (ASX) experienced a sharp downturn following renewed pressure from US-China trade tensions. After notching its best one-day performance in five years, the local market gave back much of those gains as US President Donald Trump announced a third increase in tariffs on Chinese imports — this time lifting the rate to 145%.
The S&P/ASX 200 index dropped by 167.3 points, or 2.17%, to 7,542.3 by mid-morning. Over the past five days, the index has declined 1.64%, and it is down 3.47% compared to the same time last year. The fall mirrored Wall Street’s overnight performance, triggered by global investor concern around escalating trade tensions and the broader economic outlook.
All 11 sectors of the ASX opened lower. Materials slipped 1.44%, utilities fell 0.91%, energy dipped 0.39%, and industrials edged back by 0.42%. Market-wide selling highlighted the sensitivity to global macroeconomic risks.
Adding to the complexity, US inflation data for March came in weaker than expected. While this might typically provide support for the view that rate cuts are on the horizon, analysts suggest that the geopolitical environment is overshadowing macroeconomic signals. Uncertainty remains elevated as markets digest the implications of the ongoing trade strain.
Amid the volatility, gold emerged as a standout. Investors turned to the traditional safe haven, pushing the metal to a fresh record high of US$3,190 an ounce (A$5,129). This surge in demand drove significant early gains for several gold mining stocks on the ASX.
Among the top performers were Regis Resources (ASX:RRL), which rose 4.33% to $4.58, and Newmont (ASX:NEM), up 3.38% to $81.75. West African Resources (ASX:WAF) also moved higher by 3.11% to $2.32, while De Grey Mining (ASX:DEG) gained 2.97% to $2.43. Evolution Mining (ASX:EVN) advanced 2.66% to $7.33, contributing further strength to the sector.
The S&P/ASX 200 remains a key barometer for the Australian equity market, tracking the performance of the top 200 listed companies by market capitalisation. While global uncertainties continue to influence short-term movements, investors will be closely watching developments in trade policy and economic data for cues on the market’s next move.
