AUS
NZ
UK
CA
USA
IND
Highlights
- ASX200 jumps as US-China trade tensions ease
- Resource stocks lift, gold miners retreat on reduced risk sentiment
- Materials sector leads gains; ASX dividend stocks stay in focus
Australia’s benchmark index surged this morning, boosted by signs of de-escalation in long-running US-China trade tensions. A temporary reduction in tariffs from both economic giants has buoyed investor sentiment, propelling the S&P/ASX200 higher by 62.3 points, or 0.76%, to 8,295.8 by 10:30am AEST on 13 May.
The rebound follows an agreement between Washington and Beijing to significantly scale back tariffs for 90 days while broader trade discussions continue. US tariffs on Chinese goods have been trimmed to 30% from 145%, and China has slashed its proposed 125% tariffs on US imports to 10%. The shift has been viewed as a constructive move toward a more stable global trade outlook.
Markets responded positively, with ANZ noting the development as a material de-escalation in trade conflict. Economists suggest the temporary relief may help stave off worst-case economic scenarios and potentially support global growth momentum in the short term.
The materials sector was the standout performer, climbing 0.88% amid increased risk appetite. Notably, aluminium producer Alcoa (ASX:AAI) soared 7.94% to $44.19 as investors priced in reduced trade friction. Energy and industrials also nudged higher, while utilities faced minor losses, dipping 0.21%.
However, easing safe-haven demand had a visible impact on gold-focused companies. Several miners saw early declines: Perseus Mining (ASX:PRU) slid 8.71% to $3.25, Capricorn Metals (ASX:CMM) dropped 8.6% to $8.61, Ramelius Resources (ASX:RMS) fell 7.38% to $2.51, Genesis Minerals (ASX:GMD) declined 7.3% to $3.81, and Regis Resources (ASX:RRL) tumbled 7.28% to $4.33.
While the relief in global tensions triggered short-term market optimism, further developments are anticipated in upcoming negotiations. Talks are expected to focus on long-standing non-tariff measures, including potential adjustments to export controls on rare earth minerals.
The broader context of market performance remains vital for investors watching indices like the S&P/ASX200, which represents around 80% of Australia’s listed equity market, and the ASX300, which includes a wider array of large and mid-cap companies.
In parallel, ASX dividend stocks continue to attract attention as markets balance growth potential with income stability amid ongoing global developments.
With seven out of eleven sectors in positive territory today, momentum remains robust across much of the local market landscape.
