Australian shares bounced back on Monday, with heavyweight miners leading the advance, after US tariff exemptions for select technology products alleviated concerns about President Donald Trump’s trade policies.
The benchmark S&P/ASX 200 index rose 0.7% to 7,698.9, as of 1230 GMT, recovering from the previous session’s 0.8% decline.
Market sentiment improved after the White House announced exemptions from planned reciprocal tariffs on Friday, though Commerce Secretary Howard Lutnick warned that critical Chinese technology products and semiconductors would face separate duties within two months.
For Australia, which is heavily reliant on trade with China, Trump’s plans to increase tariffs on Chinese goods to 125% from 104% remain particularly worrying. Beijing has consistently retaliated against Washington’s trade measures.
Mining stocks advanced 2.2%, as a weaker dollar boosted metal prices.
Industry giants BHP, Fortescue, and Rio Tinto gained between 1% and 3%.
Shares of sector leaders BHP, Fortescue, and Rio Tinto advanced between 1% and 3%, each. Gold miners added 1.9%, reaching a record high as investors sought safe-haven investments amid trade uncertainties.
Australia shares lean into correction territory as US tariff tensions loom
The sub-index is set for its third consecutive day of gains, led by West Gold Resources and Brightstar Resources, up 5.9% and 4.8%, respectively.
Energy stocks advanced 1% on strong oil prices. Industry heavyweight Woodside Energy advanced 1.1%.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.7% to 12,102.15.
Investors now await Thursday’s inflation data for insights into the central bank’s interest rate cut trajectory.
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