Tariff Relief Sparks ASX Surge as Energy and Miners Rally

April 23, 2025 02:43 PM AEST | By Team Kalkine Media

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Tariff Relief Sparks ASX Surge as Energy and Miners Rally — Image source: Shutterstock

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Highlights

ASX lifted by gains in energy and mining sectors

Tariff de-escalation signals boost investor sentiment

Gold miners and Cettire see sharp declines amid mixed earnings

Australian shares witnessed a strong rally on Wednesday, lifted by optimism surrounding potential tariff de-escalation between the US and China. The S&P/ASX 200 climbed 1.3%, or 104.2 points, reaching 7920.9 by mid-afternoon. This uptick came on the back of gains across all 11 sectors, with energy and iron ore miners leading the charge.

Investor sentiment received a significant boost after US President Donald Trump indicated that the current 145% tariff rate on Chinese goods would likely be lowered. These remarks came in response to US Treasury Secretary Scott Bessent’s statement that the tariff standoff was “unsustainable” and would likely be resolved.

Following these comments, Wall Street posted broad gains, with the S&P 500 rallying over 2% and futures continuing the upward trend. This surge spilled over to the Australian market, where local technology names such as WiseTech Global (ASX:WTC) jumped 4.8% and NextDC (ASX:NXT) rose 4%.

In the commodities space, energy and mining stocks saw solid gains as iron ore and crude oil prices climbed. Optimism around reduced tariffs on Chinese imports — a major consumer of these resources — pushed BHP Group (ASX:BHP) up by 3.1%, while Woodside Energy (ASX:WDS) rose 4% and Santos (ASX:STO) gained 5.7%.

However, the rally wasn’t universal. Gold miners tumbled in response to falling spot gold prices, which briefly touched US$3500. Evolution Mining (ASX:EVN) dropped 10.2% and Genesis Minerals (ASX:GMD) declined 10.7% as traders moved to secure recent gains.

Meanwhile, Commonwealth Bank of Australia (ASX:CBA) fell 1.6% following a strong 4% jump the previous day, indicating some profit-taking activity.

Among standout performers, Paladin Energy (ASX:PDN) soared more than 26%, propelled by record quarterly output from its Langer Heinrich uranium mine, despite weather disruptions. Telix Pharmaceuticals (ASX:TLX) also impressed with a 9.8% gain following a 62% surge in revenue, thanks to rising demand for its prostate cancer imaging agent.

On the downside, online luxury retailer Cettire (ASX:CTT) plummeted 22.6%, hurt by weakening US demand and declining earnings, both impacted by lingering tariff concerns. Capricorn Metals (ASX:CMM) also faced heavy selling, sinking 11.8% after its CEO was stood down following an assault charge.

Despite some volatility in specific names, the broader market’s tone appears to be shifting more positively amid hopes of easing global trade tensions.

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