ASX 200 gains as banks offset mining slump despite Wall Street’s tech sell-off and concerns over spending cuts
The Australian dollar decreased against the U.S. dollar, trading at 70.12 U.S. cents.
Overall, the Australian market showed resilience, with seven of the 11 sectors posting gains.
Sector performance
The mining sector experienced significant declines, dropping 3.85 per cent amid a lower copper price.
BHP shares fell by 3.64 per cent to $55.05, while Rio Tinto decreased by 2.68 per cent to $146.27 and Capstone Copper dropped 4.12 per cent to $11.18.
In comparison, the U.S. market underperformed, with the S&P 500 down 1.2 per cent and the Nasdaq 100 down 2.9 per cent.
Traders were concerned about the future spending habits of U.S. tech giants, projected to invest $US825 billion ($1.2 trillion).
Kyle Rodda, a senior analyst at Capital.com, suggested that the risk perception has shifted regarding these investments.
Several sectors unrelated to AI supported the ASX 200, helping to mitigate losses.
Wesfarmers stock increased by 3.76 per cent to $80.29, JB Hi-Fi rose by 2.19 per cent to $73.24, and Harvey Norman climbed 3.22 per cent to $4.17.
The major banks also performed well, with Commonwealth Bank rising 4.35 per cent to $164.00 and National Australia Bank increasing by 3.25 per cent to $41.31.
Oil prices surged, reaching $US112 ($A160) a barrel following the latest drone attacks in Saudi Arabia.
In company updates, Zip’s shares plummeted by 29.47 per cent to $1.46 after acknowledging a $10.1 million loss from a fraud incident in the U.S.
Despite this setback, Zip maintained its previous full-year guidance, reporting an 18 per cent increase in transaction volume to $4.6 billion.
Temple Webster saw its shares jump by 33.41 per cent to $5.43, despite reporting an 8 per cent revenue decline.
Nick Scali rebounded by 5.15 per cent to $12.65 after experiencing a significant drop on Thursday.
