AUS
NZ
UK
CA
USA
IND
Highlights
- ASX posts strongest performance in a week
- Gold miners lift on safe-haven demand
- ASX dividend stocks remain in focus
The Australian sharemarket kicked off the week on a strong note, buoyed by hopes of a possible thaw in US-China trade tensions. The S&P/ASX 200 Index advanced 0.5% or 37.6 points to reach 8451.7 by midday, as nine of the 11 sectors traded in positive territory. Financial stocks led the charge, helping the All Ordinaries rise 0.4%.
Optimism was fuelled by reports that US and Chinese officials might resume trade negotiations soon. This speculation followed signals from the White House about a potential call between President Joe Biden and China’s Xi Jinping, which lifted investor sentiment on Wall Street. Meanwhile, a tariff reprieve on select Chinese goods until August, announced post-market, also added support.
A brief dip in US manufacturing data earlier in the session had triggered concerns around stagflation and global trade slowdown. This led to volatility in global markets, with the yield on 30-year US Treasuries briefly crossing 5%, while the US dollar retreated. The Australian dollar, in contrast, climbed 1% to hover around US65¢.
Gold prices held firm near US$3400 after a 2.8% gain on Monday, driven by renewed appetite for safe-haven assets. Australian gold miners responded positively. Genesis Minerals (ASX:GMD) jumped 5.4%, and Newmont Corporation (ASX:NEM) rose 3.7%, bolstering the materials sector.
Banking stocks were also strong contributors to market gains. Westpac (ASX:WBC) rose 1%, and ANZ Group (ASX:ANZ) climbed 0.9%, amid speculation that a positive outcome from US-China trade talks could eventually boost resource stocks at the expense of financials.
Among other notable ASX300 stocks, Tasmea Limited (ASX:TEA) surged 7.3% after announcing a special dividend of 12 cents per share, attracting interest from those tracking ASX dividend stocks.
In contrast, IDP Education (ASX:IEL) recorded the steepest fall, tumbling 41.5% after warning that international policy uncertainty is impacting its enrolment pipeline. The company also flagged a profitability and cost review.
Treasury Wine Estates (ASX:TWE) slipped 0.7% on weaker shipment numbers and a planned distribution cut in California, while Domino’s Pizza Enterprises (ASX:DMP) fell 1.4% following leadership changes in its Japan unit aimed at improving execution. Meanwhile, Meridian Energy (ASX:MEZ) lost 1.5% after power supply adjustments prompted by improved hydro conditions in New Zealand.
The market’s performance underscored investor optimism but also reflected caution as global economic signals remain mixed. Traders continue to monitor developments closely, especially in relation to trade and inflation data, which are likely to shape sentiment across both financials and commodities in the days ahead.
