AUS
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Highlights
- ASX rises as China's potential stimulus boosts market sentiment.
- Block Inc misses earnings expectations, impacting stock performance.
- ANZ reports an 8% decline in annual profits amid strong banking competition.
Australian shares have surged following a positive lead from U.S. markets and potential economic stimulus from China. The S&P/ASX 200 climbed 0.9% to 8298.5 points, with all sectors in positive territory, led by materials stocks, which rose by 1.6%. Overnight, Wall Street saw gains in the S&P 500 and Nasdaq, driven by the Federal Reserve’s quarter-point rate cut and comments from Chair Jerome Powell on economic resilience. Powell highlighted strong economic fundamentals but noted inflation remains elevated. He also indicated that while policy remains restrictive, bond market fluctuations reflect growth expectations.
The spotlight on Australia’s stock market includes gold miners, who are benefiting from a rise in gold prices. Spot gold rebounded to over $US2700 per ounce, while oil and iron ore prices also experienced recoveries. Investors are also eyeing potential stimulus measures from China’s National People’s Congress Standing Committee, which could provide support amid economic challenges, including concerns over potential tariffs if Donald Trump returns to the U.S. presidency.
In company news, Block Inc (ASX:SQ2), the owner of Afterpay, reported a 19% increase in profits for the September quarter, reaching $US2.25 billion (AUD 3.37 billion). Despite the revenue jump, Block’s earnings fell short of market expectations, causing its shares to drop 6.7% to AUD 110.90.
Meanwhile, ANZ (ASX:ANZ) shared its annual financial performance, reporting a net profit of AUD 6.54 billion, down 8% compared to the previous year. CEO Shayne Elliot cited “intense” competition within the banking sector as a challenge. Despite the profit dip, ANZ shares managed a slight increase of 0.3%.
Australia’s leading property classifieds business, REA Group (ASX:REA), announced a 21% rise in quarterly revenue to AUD 413 million, while earnings before interest, taxes, depreciation, and amortization grew by 23% to AUD 243 million. REA shares remained steady at AUD 233.60.
Additionally, News Corp (ASX:NWS) revealed changes in its leadership as CFO Susan Panuccio prepares to step down, succeeded by Diageo’s Lavanya Chandrashekar. News Corp also reported significant revenue and earnings growth driven by its real estate investments. Shares gained 1.2%, reaching AUD 47.79.
The ASX’s positive movement reflects investor optimism over global economic developments, particularly regarding anticipated support from China. With steady interest from domestic and international investors, the Australian market appears set to maintain a cautious yet optimistic trajectory in the face of economic uncertainties.
