What's Affecting Markets Today
Asian markets follow US markets higher
Asian-Pacific markets largely advanced on Wednesday, drawing inspiration from Wall Street’s overnight gains where the Nasdaq Composite surged to a new record close, despite unexpectedly high U.S. inflation data. The Producer Price Index for April increased by 0.5%, surpassing the anticipated 0.3%, according to Dow Jones. Although the initial reaction was bearish, sentiment improved as March’s wholesale prices were revised to indicate a 0.1% drop.
Trading was paused in South Korea and Hong Kong due to public holidays. Meanwhile, China’s CSI 300 index declined by 0.45% after the People’s Bank of China maintained its one-year medium term lending facility rate at 2.5%. In contrast, Japan’s Nikkei 225 rose by 0.75%, and the broader Topix index grew by 0.53%.
In the U.S., the Nasdaq Composite climbed 0.75% to reach 16,511.18, while the Dow Jones Industrial Average increased by 0.32%, and the S&P 500 grew by 0.48% as markets awaited further inflation indicators.
ASX Stocks
ASX 200 - 7,763.1 (+0.5%)
Key Highlights:
The Australian share market saw an uptick today, with the S&P/ASX 200 Index rising 0.5% to 7,762.4 and the All Ords increasing by 0.4%. The growth was predominantly driven by the mining sector, especially after BHP’s stock ascended 2.4% following Anglo American’s strategic shift towards its key mineral assets. This sectoral rally was further supported by the federal government’s announcement of substantial financial backing, totaling $24.3 billion in tax credits and incentives for critical minerals and hydrogen industries.
In other sectors, consumer and property stocks also benefited, with Fortescue, Arcadium, and Silex Systems registering notable gains. The budget’s provision of a $7.8 billion cost-of-living package is expected to support businesses catering to lower-income groups, with Domino’s Pizza and Super Retail among the key beneficiaries.
Market optimism is tempered by reduced expectations for a Reserve Bank rate hike, influenced by slower-than-anticipated wage growth. Meanwhile, Australian Agricultural Company and Iress faced declines due to operational challenges and security issues, respectively.
Leaders
IEL Idp Education Ltd 6.42%
WA1 WA1 Resources Ltd 5.83%
NEU Neuren Pharmaceuticals Ltd 5.35%
LTM Arcadium Lithium Plc 4.46%
ANN Ansell Ltd 4.35%
Laggards
HLS Healius Ltd -6.34%
BFL BSP Financial Group Ltd -6.19%
WGX Westgold Resources Ltd -3.70%
IRE Iress Ltd -3.56%
FBU Fletcher Building Ltd -3.46%