Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • ASX 200 rises 0.6% to 8,587.70, led by banks, miners, and tech stocks.

  • Trump imposes new tariffs on seven countries, with Australia facing a 10% baseline rate.

  • Wall Street rally, driven by tech gains and easing Fed concerns, lifts regional sentiment.

Australian shares climbed on Thursday, recovering from the previous session’s losses as investor sentiment improved following a rebound on Wall Street. The S&P/ASX 200 index rose 0.6% to close at 8,587.70, supported by gains in financials, mining, and technology stocks.

The upswing came despite continued global trade tensions, with U.S. President Donald Trump escalating tariff actions, announcing new levies on seven countries. Earlier in the week, a 25% tariff was placed on Japan and other key trade partners. Australia was not exempt, with the U.S. setting a 10% baseline tariff on all trading partners, including Canberra.

The risk rally was largely driven by optimism from Wall Street overnight. The tech-heavy Nasdaq surged, briefly propelling Nvidia to a $4 trillion valuation, buoying broader equity markets globally.

“The market is taking lead from Wall Street's rebound overnight where investors are shrugging off the tariff volatility to buy into growth and undervalued sectors of the market,” said Grady Wulff, Senior Market Analyst at Bell Direct.

Investors were also encouraged by the minutes from the Federal Reserve's June meeting, which suggested that Trump's tariff hikes may not disrupt the path toward potential interest rate cuts later this year.

Sector Performance

Financial stocks led Thursday’s rally, with the sector up 0.7%. Among the "Big Four" banks, Commonwealth Bank, NAB, ANZ, and Westpac saw gains between 0.4% and 1%.

Mining shares rose 0.9%, lifted by resilient iron ore prices. Major players like BHP climbed 0.3%, while Rio Tinto and Fortescue Metals Group added 0.7% and 1.5%, respectively.

Energy stocks gained 0.5%, with Woodside Energy up 0.5% and Santos rising 0.7%, supported by firm oil prices.

Technology shares tracked the rally in U.S. tech stocks, climbing 0.6%. NEXTDC rose 1%, and Block Inc’s Australia-listed shares surged 2.2%.

Regional Market Update

Across the Tasman Sea, New Zealand’s S&P/NZX 50 index edged 0.1% higher to 12,781.52, a day after the Reserve Bank of New Zealand left its cash rate unchanged at 3.25%.