AUS
NZ
UK
CA
USA
IND
Highlights
- ASX gains on Fed rate cuts and China's potential stimulus.
- Life360 and Commonwealth Bank hit new highs.
- Mining and tech stocks lead the rally, with notable rises in iron ore and gold.
Australian shares rallied on Friday, echoing a positive Wall Street trend amid optimism about economic policies from the United States and China. The S&P/ASX 200 rose by 0.8% (68.8 points) to reach 8295.1 points, nearing an all-time high set last month. For the week, the index increased by 2.2%, marking its best weekly performance since mid-August, driven by expectations of lower interest rates and potential stimulus measures in China.
The rally saw 10 out of 11 sectors close in positive territory, with technology stocks leading the way. Family app company Life360 (ASX:360) surged 4.4% to reach a record $23.79 after a U.S. investment bank significantly raised its share price target. Commonwealth Bank (ASX:CBA) also achieved a new high, increasing by 1.4% to close at $149.56. Other major banks followed suit, with Westpac (ASX:WBC) rising 2% to $32.14 and ANZ (ASX:ANZ) gaining 1.3%, despite lower fiscal 2024 net profits. ANZ’s CEO Shayne Elliott noted that competition in the banking sector remains “intense.”
U.S. markets set the tone on Thursday night, with the S&P 500 rising by 0.9%, the Dow Jones ending flat, and the Nasdaq climbing 1.5%. The Federal Reserve’s decision to reduce its benchmark interest rate by a quarter-point supported market sentiment, as did its assurance that the recent U.S. election outcome would not influence policy.
Chinese policy decisions added to market optimism. Investors await the outcome of a week-long conference of China’s top policymakers, with expectations of fiscal stimulus to counter potential trade tariffs under another Trump administration. The prospect of new support measures from China has boosted Australia’s iron ore stocks, with mining giant BHP (ASX:BHP) gaining 1% to $43.40 and Rio Tinto (ASX:RIO) adding 1.4% to $123.11.
Gold stocks also performed well following a rebound in bullion prices. Bellevue Gold (ASX:BGL) rose over 3%, and De Grey Mining (ASX:DEG) climbed 2.6%. Among biotech firms, Neuren Pharmaceuticals (ASX:NEU) led the gains, surging 15% to $16.57 after strong U.S. sales of its drug, Daybue.
Meanwhile, Afterpay owner Block Inc (ASX:SQ2) dropped 7.2% to $111.75 due to lower-than-expected quarterly profit and user volume. In contrast, Mayne Pharma (ASX:MYX) jumped 15% to $5.10, fueled by reports of a potential sale, as revealed in The Australian Financial Review.
The Australian dollar saw a 1.4% rise over the week. Initially dropping to a three-month low of US65.1¢ after Trump’s victory, it rebounded to US66.51¢ on the back of anticipated Chinese stimulus.
