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Highlights

  • S&P/ASX 200 index rises 0.2% to 7,766.80 points on Tuesday.
  • Energy stocks and miners help offset losses in consumer discretionary firms.
  • U.S.-China trade tensions and political uncertainty weigh on market sentiment.

Australian shares saw modest gains on Tuesday, supported by energy stocks and miners, although the overall market remained restrained. The S&P/ASX 200 index (ASX: AXJO) was up by 0.2%, reaching 7,766.80 points by early afternoon.

Miners played a key role in the market's positive move, with the sector climbing 0.7%—its highest level in almost two weeks. The rally in iron ore and metal prices helped drive gains for major mining companies like Rio Tinto (ASX: RIO), BHP Group (ASX: BHP), and Fortescue Metals (ASX: FMG), whose shares rose between 0.5% and 1.5%.

Energy stocks also posted gains, with the sub-index rising by more than 1%. Oil prices inched higher, partially due to tariff exemptions, boosting companies like Viva Energy (ASX: VEA) and Santos (ASX: STO), which saw increases of 3.4% and 2.1%, respectively.

However, consumer discretionary stocks came under pressure, falling nearly 1% due to concerns over U.S.-China trade tensions and domestic political uncertainty. Companies like Breville Group (ASX: BRG) and Aristocrat Leisure (ASX: ALL) experienced losses of 1.5%, reflecting caution among investors in sectors sensitive to changes in household spending.

The market sentiment was further dampened by the ongoing trade dispute between the U.S. and China, especially following President Trump’s exemption of electronics and semiconductors from new duties. This uncertainty, coupled with political concerns ahead of Australia's May 3 election, left many investors hesitant.

Looking ahead, traders are awaiting key economic data, including minutes from the Reserve Bank of Australia's recent policy meeting, job figures, and New Zealand’s quarterly inflation results. Meanwhile, New Zealand’s S&P/NZX 50 index (ASX: NZ50) saw a slight decline of 0.2%, ending the day at 12,082.43 points.