Australian shares bounced back on Tuesday after a sharp sell-off in the previous session as upbeat China demand and bullion’s record highs lifted the resources stocks, while the domestic central bank kept interest rates unchanged as expected.
The S&P/ASX 200 ended 1.04% higher at 7,925.2 points. The benchmark index had slumped 1.7% on Monday.
The Reserve Bank of Australia (RBA) held rates at 4.10% but took a slight dovish turn by hinting at being cautious about further rate easing.
“The RBA’s post-meeting statement was overall on the dovish side; at least relative to its February 25 meeting, which delivered a “hawkish cut”,” UBS analysts said.
The brokerage expects the RBA to reduce the cash rate by a cumulative 75 basis points (bps) in 2025, with two 25 bps cuts each in May and August.
Investors now await the potential impact of U.S. President Donald Trump’s new trade tariffs, which will be announced on April 2.
“If the tariffs are more severe than expected, this could rattle market confidence and amplify growth concerns. That scenario would be a headwind for the ASX,” said Tim Waterer, chief market analyst at KCM Trade Global.
In Sydney, miners rose 1.2%, leading the benchmark higher, on improving iron ore prices, supported by a growing demand for the steel-making ingredient in top consumer China.
Australian shares slip over 1% on US tariff worries; RBA meeting in focus
BHP Group, Rio Tinto gained 1.8% and 1.4% respectively.
Gold stocks advanced 0.5% as bullion scaled another record peak.
“Gold notched up new all-time highs, which translated into gains in the materials sector,” said Waterer.
Energy stocks rose 1%, tracking rising oil prices.
New Zealand’s benchmark S&P/NZX 50 index advanced by 0.3% to 12,312.6 points.
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