ASX200 Rises on Wall Street Optimism and Iron Ore Rally

The Australian sharemarket ASX200 climbed higher on Thursday, buoyed by a strong lead from Wall Street and a sharp rebound in iron ore prices. The benchmark ASX200 index rose 50.6 points, or 0.59 percent, to close at 8589.2, while the broader All Ordinaries gained 48.8 points, or 0.56 percent, ending the session at 8826.7.

Gains were led by the materials sector, which rallied 1.24 percent on the back of stronger commodity prices and optimism about China’s economic outlook.

Iron ore futures in Singapore surged more than 3% to US$98.95 a tonne, boosted by encouraging inflation data from China that ended a four-month streak of consumer deflation. Analysts say the data raised hopes for further stimulus and easing trade tensions with the U.S., a development that would benefit Australian resource exporters.

“This snapped a run of four months of consumer deflation and buoyed hopes that stimulus measures and easing trade risks with the US will boost China-facing stocks by the end of the year,” said IG market analyst Tony Sycamore.

Mining giants were among the top performers:

• BHP added 1.19% to $38.30
• Rio Tinto climbed 0.96% to $108.62
• Fortescue Metals rose 1.91% to $16.51
• Mineral Resources surged 3.66% to $25.51

Gold stocks also advanced, with spot prices for the precious metal touching US$3330 an ounce.

• Evolution Mining jumped 3.57% to $7.55
• Newmont Corporation gained 3.24% to $90.29

Meanwhile, the financial sector posted solid gains:

• Commonwealth Bank rose 0.82% to $180.37
• Westpac edged up 0.5% to $33.87
• NAB added 1.12% to $39.74
• ANZ improved 0.77% to $30.29

Despite ongoing concerns about global trade policies, investors appeared to rotate back into risk assets, encouraged by a more supportive macro backdrop and early signs of recovery in key markets like China.