ASX Hits 11-Week High Amidst US-China Tariff Pause

The Australian Securities Exchange (ASX) reached its highest level in 11 weeks, buoyed by the announcement of a temporary pause in tariff increases between the United States and China.

The ASX 200 index climbed 35.50 points, or 0.43%, to 8,269, with standout performances from the energy and information technology sectors.

Similarly, the All Ordinaries index saw a rise of 43.70 points, or 0.52%, closing at 8,510.70.

The Australian dollar also appreciated, gaining 0.71% to 64.16 US cents.

This upswing follows President Donald Trump's declaration that US tariffs would be adjusted to 30% and China's tariffs would be reduced to 10% for the following 90 days. Companies with strong ties to either the US or China were among the top beneficiaries, with payment provider Block soaring by 5.86% and Zip increasing by 8.77%. Travel firms like Corporate Travel Management and Flight Centre also reported substantial gains of 9.94% and 5.21%, respectively. In the consumer goods arena, Breville Group experienced a 7.76% increase, and major mining companies like BHP and Fortescue Metals saw their stocks climb as well.

Senior financial market analyst, Kyle Rodda, noted that the ASX mirrored a positive movement in US markets, highlighting a strengthening in energy and tech stocks. Despite concerns about potential global economic slowdowns, there is an optimistic perspective among investors who anticipate only a minimal and brief downturn.

Not all sectors responded positively; defensive stocks, including consumer staples, telecommunications, and utilities, underperformed. Supermarket giants Woolworths and Coles saw their shares drop by 3.7% and 3.4%, respectively. The banking sector showed mixed outcomes, with Westpac and ANZ rising, while CBA and NAB saw slight declines.

In other developments, a recent executive order signed by President Trump aims to lower prescription drug prices, impacting pharmaceutical stocks positively worldwide, including in Australia. Clarity Pharmaceuticals and Telix Pharmaceuticals both saw significant gains. Additionally, PolyNovo reported a 14.3% increase in its share price after revealing successful human trials for its BTM device meant to treat type-1 diabetes.

The moderate optimism surrounding the temporary trade détente suggests a potential boost to the financial markets and presents an opportunity for further gains, subject to continuing positive developments in international trade relations.

Published:Wednesday, 14th May 2025
Source: Paige Estritori

Share this news item:

Finance News

Australia Records Historic Fall in Disposable Income

16 May 2025: Paige Estritori

Recent data from the Australian Bureau of Statistics (ABS) revealed a historical drop in real per capita household disposable income for Australians, marking an unprecedented fall of around 8% since mid-2022. This decline represents a significant issue, with Australia experiencing the largest decrease in the developed world, according to the OECD. - read more

Record High Australian House Prices Exceed $11 Trillion

16 May 2025: Paige Estritori

Australia’s housing market has reached a significant milestone, with the total value of housing stock hitting $11.3 trillion as of April 2025. According to Cotality, formerly CoreLogic, the average home is now valued at $1 million, underscoring the considerable growth in property values. - read more

Business Loans Articles

Essential Steps to Launching Your Start-Up Successfully

Welcome to our comprehensive guide on the essential steps to launching your start-up successfully. Whether you're a budding entrepreneur or an experienced business owner looking to refine your approach, having a solid plan in place is crucial for success. - read more

10 Creative Ways to Fund Your Small Business Startup

Starting a small business can be both exciting and challenging. One of the hurdles that many entrepreneurs face is securing the necessary funds to get their venture off the ground. Finding the right financial solutions can make the difference between success and failure. - read more

Flexibility and Freedom: Exploring the Benefits of Working Capital Financing

Welcome to our exploration of working capital financing. For many Australian small business owners, managing cash flow and covering daily operational expenses can be a major challenge. This is where working capital loans come into play. - read more

Investing in Growth: How to Finance Your Business Expansion Strategically

Australia's dynamic SME landscape is ever-evolving, constantly presenting new opportunities and challenges for today's entrepreneurs. Growth is not just a goal but a necessity for these small and medium enterprises to thrive in the competitive market. As these businesses stand on the cusp of expansion, it becomes critical to recognize the indicators for growth and to approach this next stage with a robust strategic plan. - read more

Need Help Finding a Loan?

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Guarantor:
A party who agrees to be responsible for the payment of another party's debts should the original party fail to pay or perform according to a contract.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised credit representative (Australian Credit Representative 401491) of Saccasan Pty Ltd, Australian Credit License 386297. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or finance products. We do not recommend any specific financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party, qualified intermediaries with whom you can deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third part to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs.