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Highlights
ASX 200 advances on improved global sentiment as US-China trade negotiations continue
Energy and mining stocks lead gains, with Woodside Energy (ASX:WDS), Santos (ASX:STO), BHP (ASX:BHP), and Rio Tinto (ASX:RIO) advancing
Zip Co (ASX:ZIP) and Fletcher Building (ASX:FBU) outperform on corporate developments
Australian equities saw early gains, with the ASX 200 moving higher following positive cues from Wall Street. Progress in trade talks between the US and China supported sentiment across global markets, including in Asia Pacific. The S&P 500, Dow Jones, and Nasdaq each closed in positive territory, lifting confidence in sectors reliant on global demand.
Energy and materials were the standout performers on the domestic front. Woodside Energy (ASX:WDS) and Santos (ASX:STO) recorded strong gains as oil prices steadied. Meanwhile, major miners including BHP Group (ASX:BHP), Fortescue Metals Group (ASX:FMG), and Rio Tinto (ASX:RIO) posted upward movements amid improving outlook for trade-sensitive commodities.
Zip Co and Fletcher Building Stand Out
The financial technology sector saw Zip Co (ASX:ZIP) emerge as the top performer. The company gained momentum after issuing an earnings update that lifted its full-year guidance for the second time. The announcement was followed by strong price action, positioning Zip as the leading performer among ASX-listed companies during early trade.
Fletcher Building (ASX:FBU), operating within the building materials and construction segment, also gained substantially. The company confirmed that it had attracted acquisition interest from several unnamed parties, contributing to its rise on the board.
Rare Earths Pull Back Despite Recent Gains
Lynas Rare Earths (ASX:LYC) was among the few laggards on the index. The stock declined after earlier gains that followed news of Chinese export restrictions on rare earth materials. As trade dialogue between the US and China progressed, market dynamics in the rare earths segment shifted, prompting a correction in recent price movements.
This reversal comes amid broader recalibration in commodities that had previously benefited from geopolitical tension. Lynas continues to operate in a volatile environment influenced by both supply chain constraints and international trade developments.
Wall Street Strength Supports Local Momentum
Gains across the ASX followed a strong performance in US markets, where optimism around trade talks provided broad-based support. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite closed higher, reflecting sustained buying across technology, industrials, and financial stocks.
Shares of companies such as Tesla, Alphabet, and Meta Platforms recorded notable gains, driven by upbeat sentiment around ongoing negotiations between Washington and Beijing. The discussions, extending into their second day in London, were accompanied by positive commentary from US officials, contributing to market optimism.
Broader Index Performance Reflects Upbeat Tone
Within the Australian market, ten of the eleven sectoral indices were in positive territory during the morning session. Energy, materials, and financials drove much of the upward momentum, while healthcare and consumer sectors posted steady gains.
The broader sentiment reflected optimism toward easing trade friction and anticipation around upcoming domestic data releases. The Australian Bureau of Statistics is scheduled to release key figures on income and expenditure later in the day. Meanwhile, international focus remains on US inflation data, expected to be released by the US Bureau of Labor Statistics later tonight.
