The ASX has followed US markets up after US President Donald Trump somewhat relaxed his stance on tariffs, proposing a more measured approach to retaliatory tariffs.
Trump’s plan reportedly includes “breaks” for certain countries.
The S&P/ASX 200 rose 47.1 points, or 0.59%, to 7,984 points by 10.30am AEDT. Over the last five days, the index has gained 1.57%, but is down 2.15% for the last year to date.
Seven of the 11 sectors are higher. Industrials edged up 0.11% and energy added 0.08%, while materials inched back slightly by 0.02%.
Copper prices found further momentum, with ANZ Economics and Research FX Analyst Felix Ryan saying a more targeted approach on tariffs could limit the economic damage and therefore impact on copper demand.
The copper price climbed 1% to US$9,956 a tonne ($15,845) overnight AEDT.
The impact of tariffs on trade flows is also leading to tightness in Asia, according to Ryan.
“In China, the Yangshan copper premium, a gauge on the additional cost for shipping in copper, has nearly doubled this month,” he says.
“Across southeast Asia, import premiums have risen to their highest since last April. China’s normally insatiable appetite for copper is being crimped, as traders rush to get the metal into the US before any tariffs is implemented.”
China’s net imports tumbled 11% in January and February, while exports have doubled.
Ryan says this will put further downward pressure on inventories in China.
Meanwhile, Trump’s plan to ramp up the development of US domestic natural resources weighed on critical minerals prices.
“The order tapped the Defence Production Act, a wartime measure, to provide financing, loans and other investment to support domestic production,” Ryan notes.
“It includes uranium, copper, lithium and other other critical minerals. Producers elsewhere are trying to ease these oversupplied markets.”
Gold Road Resources (ASX:GOR) and Nickel Industries (ASX:NIC) were among the early movers, advancing 8.16% and 2.38%, respectively.
Gold Road, yesterday (24 March), received and rejected a non-binding takeover offer of $2.27 cash per share from larger counterpart Gold Fields (JSE:GFI).
The company labelled the bid “highly opportunistic” and says it undervalues Gold Road.
Nickel Industries, meanwhile, gained ground on the back of a March quarter trading update that shows it expects to book a 20% year-over-year increase in earnings before interest, taxes, depreciation and amortisation for the quarter.
The company estimates EBITDA will be between US$85 million and US$90 million. This follows a strong performance by the Hengjaya Mine in Indonesia which delivered 2.6 million wet metric tonnes for the quarter to date — more than double the same time last year.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
