ASX Slightly Higher as Trade Hopes Offset Caution; Zip Surges

Highlights

• Australian sharemarket advanced marginally, supported by strength in consumer staples

• Zip led gains on upgraded earnings guidance, while energy and mining stocks declined

• China’s economic data surpassed expectations ahead of expected tariff changes

The Australian sharemarket moved modestly higher, with the broader market supported by gains in consumer-facing sectors. The S&P/ASX 200 Index rose slightly around midday, with defensive stocks leading the advance. The broader mood remained cautious as investors weighed global economic developments and signals from major economies.

The White House indicated openness to a trade agreement with China, though expectations were placed on Beijing to initiate talks. Meanwhile, updates from major US financial institutions revealed stable consumer conditions and improved equity trading performance. Despite this, concerns about economic momentum persisted.

Investor sentiment globally showed signs of strain, with some institutions noting reduced allocations to US equities. Futures markets in the United States pointed to a softer open. Currency markets paused recent trends, with the dollar ending a short-term decline.

Consumer staples and financials lift index

On the ASX, consumer staples and financials provided the most support. Companies traditionally viewed as resilient during economic stress posted modest gains. Shares of major supermarket chains advanced, reflecting continued demand for essential goods.

Among the major banks, Westpac posted solid gains, followed by Commonwealth Bank. The positive sentiment was buoyed by favourable quarterly results from US banks, offering support to financial names on the local bourse.

Telecommunications and utility companies also showed strength, contributing to the overall market’s advance. These sectors benefited from steady demand expectations despite broader economic uncertainties.

Energy and mining sectors under pressure

Energy and mining companies were among the weakest performers during the session. Oil and gas firms experienced declines after a reduction in global demand forecasts by the International Energy Agency. This followed an earlier fall in global crude benchmarks.

Key energy stocks such as Woodside and Santos led sector declines, reversing earlier gains. In the mining space, Rio Tinto experienced a drop after reporting reduced output from its key iron ore operations, marking the weakest quarterly start in several years.

Zip rallies on upgraded earnings guidance

Digital payments company Zip recorded the strongest performance across the broader index. The company announced an upgraded earnings outlook for the financial year, which supported a sharp increase in its share price.

The uplift came amid increased focus on technology and financial services providers, with Zip’s update receiving particular attention given recent sector volatility. The rally made Zip the standout performer among the top listed companies during the session.

Individual stock movements and corporate updates

Star Entertainment resumed trading after a suspension, with shares falling as the company continued to seek financial restructuring. The group’s status remains in focus amid ongoing efforts to secure funding support.

WiseTech shares moved slightly higher after the company disclosed progress in its executive succession planning. A new employment agreement was confirmed for the founder, covering a long-term leadership arrangement.

Bank of Queensland posted a notable rise after providing guidance for improved earnings margins in the second half of the financial year. The announcement came despite ongoing concerns over the global economic backdrop.

Oil producer Karoon Energy recorded a small gain despite lifting its expenditure outlook. The revised guidance reflected anticipated cost increases for ongoing development activities in its offshore project.