ASX rises as tech leads gains on easing Middle East tensions
Key Takeaways
- •The ASX 200 rose 1 per cent, with nine of the 11 sectors trading higher.
- •Markets improved after the United States paused strikes against Iran and Tehran had not retaliated, easing concerns about oil supply disruption.
- •Brent crude fell more than 4 per cent to about US$93 a barrel, while gold rose 1.3 per cent to around US$4,105 an ounce.
- •Technology and mining stocks led gains, while energy shares fell as traders took profits after the drop in oil prices.
- •Myer fell more than 7 per cent after warning that weaker late-year consumer spending forced heavier discounting, while Perpetual and Evolution rose on takeover and acquisition developments.
The Australian share market is trading higher on Monday as investors returned to risk assets amid signs that tensions between the US and Iran may be easing. The ASX 200 is up 1 per cent, with nine of the 11 sectors trading higher.
Markets have been supported after the U.S. paused strikes against Iran, while Tehran has so far refrained from retaliating. The shift has reduced concerns about disruptions to Middle East oil supplies and improved overall sentiment, with investors also watching how quickly commodity prices and currency moves feed through to local sectors.
Brent crude has fallen more than 4 per cent to about US$93 a barrel, while gold has risen 1.3 per cent to around US$4,105 an ounce. The Australian dollar has also edged higher to about 70 US cents.
Technology is leading the gains on the ASX today. WiseTech Global has rallied 5.6 per cent, Xero is up 5.2 per cent and NextDC has added 3 per cent as investors rotate back into growth stocks. Mining shares are also firmer. BHP has climbed 2 per cent and Rio Tinto is up 1.8 per cent, while higher gold prices have lifted Northern Star 3.1 per cent and Bellevue Gold more than 8 per cent.
Energy is the weakest sector as traders take profits following the sharp fall in oil prices. Woodside has dropped 4.1 per cent and Santos is down 4.3 per cent, despite announcing that the first cargo has been exported from its Barossa project.
Elsewhere, Myer has slumped more than 7 per cent after warning that weaker consumer spending late in the financial year forced heavier discounting, putting pressure on margins. Perpetual is higher after takeover suitor EQT increased its offer to $22.50 a share, valuing the company at about $2.65 billion.
Evolution has gained 3 per cent after agreeing to acquire Carnaby in a $213 million scrip deal, giving the gold producer access to the Greater Duchess copper-gold project in Queensland. Carnaby surged more than 60 per cent on the news.
The material in this article is for information only and should not be treated as investment advice. Readers should conduct their own research and consult a certified financial adviser before making any investment decisions.