ASX Surges as Tariff Optimism and Wall Street Gains Ignite Investor Confidence

April 23, 2025 12:29 PM AEST | By Team Kalkine Media

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ASX Surges as Tariff Optimism and Wall Street Gains Ignite Investor Confidence — Image source: Shutterstock

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Highlights

ASX surges on hopes of tariff relief and Wall Street momentum

Energy, tech, and mining stocks lead gains; gold stocks retreat

Paladin Energy shines with record uranium output

Australian shares rallied strongly mid-week, with investor sentiment buoyed by easing geopolitical tensions and a powerful rally on Wall Street. The S&P/ASX 200 index climbed 1.6% or 122 points to 7938.7, driven by optimism that US-China trade tensions may be easing after key remarks from US officials.

US President Donald Trump signaled that the steep 145% tariffs on Chinese imports would likely be reduced. This follows comments from Treasury Secretary Scott Bessent calling the current tariff situation unsustainable and suggesting de-escalation is imminent. US equities responded enthusiastically, with all three major indexes rising over 2%, and the positive momentum spilled into the Australian market.

Ten of the ASX’s eleven sectors ended the day in the green, led by strong performances from energy, mining, and tech stocks. Consumer staples was the only sector to lag behind.

Energy stocks surged on rising crude prices, lifted by expectations that a reduction in tariffs could boost global demand, especially from China, a significant importer of crude oil and Australian resources. Shares of Woodside Energy (ASX:WDS) climbed 2.8%, while Santos (ASX:STO) spiked by 5%. Mining heavyweight BHP Group (ASX:BHP) added 3%, amid speculation around CEO Mike Henry’s potential departure and improved sentiment on iron ore prices.

In the tech sector, sentiment was buoyed by a strong showing from Tesla in extended US trading. This uplift flowed through to local technology names, with logistics software firm WiseTech Global (ASX:WTC) jumping 4.9%, and data centre operator NextDC (ASX:NXT) rising 4.5%.

Paladin Energy (ASX:PDN) delivered the day’s standout performance, surging over 25% following a record quarterly output from its Langer Heinrich uranium mine. Despite weather-related challenges, the result sparked enthusiasm across the broader uranium sector.

Gold miners, however, faced headwinds. As gold prices retreated from recent highs near $US3500, investors trimmed exposure. Evolution Mining (ASX:EVN) and Genesis Minerals (ASX:GMD) were hit hard, falling 8.8%.

Among other notable movers, Telix Pharmaceuticals (ASX:TLX) soared 11% after a robust revenue update, driven by strong demand for its imaging product in prostate cancer care. Insignia Financial (ASX:IFL) managed a 3.7% lift, even after reporting large fund outflows due to redemptions from an institutional client.

Meanwhile, Cettire (ASX:CTT) tumbled 17.6% as weak US demand hurt its earnings. Capricorn Metals (ASX:CMM) dropped 9.1% following the suspension of its CEO amid legal issues.

The market rally highlights investor appetite for risk amid improving trade sentiment and strong offshore leads, positioning the ASX for further gains if geopolitical winds continue to shift favorably.

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