Tech Stocks Propel ASX Higher Despite Mining Weakness

January 22, 2025 04:33 PM AEDT | By Team Kalkine Media

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Tech Stocks Propel ASX Higher Despite Mining Weakness — Image source: Shutterstock

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Highlights

Tech sector fuels ASX rally with standout gains.

Mining stocks decline on tariff concerns.

Uranium miners soar on U.S. policy shifts.

The Australian stock market gained ground on Wednesday, supported by a robust performance from the technology sector despite losses among mining stocks. The S&P/ASX 200 climbed 0.3%, adding 27.4 points to close at 8429.8, with seven of the 11 sectors posting gains.

Technology shares surged after a historic subscriber boost from Netflix ignited a wave of optimism. Netflix recorded its largest quarterly subscription increase ever, pushing its share price up 15.8% in after-hours trading. This positive momentum was amplified by former U.S. President Donald Trump's announcement of a multi-billion-dollar joint venture to bolster artificial intelligence infrastructure, a move expected to accelerate advancements in emerging tech.

On the ASX, several tech companies enjoyed notable gains. WiseTech Global (ASX:WTC) rose 2%, NextDC (ASX:NXT) added 2.2%, and TechnologyOne (ASX:TNE) advanced 2%. Overall, the technology sector closed 2.4% higher, leading the day's market gains.

However, the mining sector faced headwinds as concerns grew over potential tariffs on China announced by Trump. These tariffs could impact Australia's iron ore exports, given their reliance on Chinese markets. As a result, iron ore prices in Singapore dropped 1% to $US103.75 per tonne. Key mining players faced declines: BHP Group (ASX:BHP) fell 1.9%, Fortescue Metals (ASX:FMG) lost 1.8%, and Rio Tinto (ASX:RIO) dipped 0.8%.

Uranium miners stood out as top performers following signals that the U.S. could impose tariffs on Canadian uranium imports. Paladin Energy (ASX:PDN) surged 10.1%, while Boss Energy (ASX:BOE) soared 14.2%. This development highlighted a positive outlook for the sector amid global policy shifts.

Iluka Resources (ASX:ILU) experienced the steepest decline of the day, losing 7% due to concerns over mined metals tariffs. This drop came despite the company reporting a 23.7% increase in quarterly output.

In other notable movements, Woodside Energy (ASX:WDS) slid 1.9% following a quarterly production dip, while West African Resources (ASX:WAF) gained 1.5% on improved gold production figures. Meanwhile, Qantas (ASX:QAN) rose 3.7% after announcing changes to its loyalty program, and Generation Development Group (ASX:GDG) advanced 5.2%, driven by a 22% increase in net inflows.

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