The Australian sharemarket is on track to record its best day in two weeks, buoyed by a rally on Wall Street and as US President Donald Trump said tariffs on China would be wound down from the current 145 per cent rate.

The S&P/ASX 200 Index rose 1.3 per cent, or by 104.2 points, to 7920.9 near 2pm after the major benchmarks in New York closed up more than 2 per cent. The All Ordinaries also rose 1.4 per cent.

On Wall Street, stocks rallied and gold retreated after Treasury Secretary Scott Bessent called Washington’s tariff stand-off with China unsustainable and said he expected the situation to de-escalate. Trump echoed the sentiment after the market close and said the final tariff rate on China would not be “anywhere near” the current level. US futures point to further gains overnight.

A shift in mood

The ASX 200 was a sea of green with all 11 sectors higher, led by energy. IG analyst Tony Sycamore expects some further, but moderate, upside for the ASX 200 after the White House played down trade tensions with China.

“What we might see happen now is some moderation – that the ASX 200 gravitates back to its 200-day moving average, which is around 8100, because [the US] need to be mindful that they can’t blow up the market,” he said. “But it doesn’t make sense the ASX 200 goes roaring back to record highs – not for a good deal of time.”

Australia’s rate sensitive technology sector tracked its US counterparts higher and as Tesla rallied more than 5 per cent in extended trading as investors shrugged off disappointing earnings and instead took heart from a pledge by Elon Musk to dedicate more time to the electric carmaker. On the ASX, software giant WiseTech jumped 4.8 per cent, and data centre stock NextDC jumped 4 per cent.

Energy and mining stocks were also well bid, tracking iron ore and crude prices, buoyed by hopes that tariffs on China – one of the largest importers of crude and Australian iron ore – could be less severe than thought. BHP advanced 3.1 per cent as investors mulled a report that chief executive Mike Henry was seeking an exit. Woodside added 4 per cent and Santos shot up 5.7 per cent.

Stocks on the move

Traders booked profits in gold stocks, tracking a fall in prices after spot gold briefly touched $US3500. Evolution Mining sank 10.2 per cent and Genesis Minerals 10.7 per cent. Separately, West Australian gold miner Capricorn Metals sank 9.1 per cent after it stood down its chief executive, who has been charged with aggravated assault.

Commonwealth Bank dropped 1.6 per cent as investors booked profits after Australia’s largest bank jumped 4 per cent to a record high on Tuesday.

Paladin Energy was the ASX 200’s best performer, leaping more than 26 per cent and lifting uranium stocks after its Langer Heinrich mine notched a record quarterly output result – even as major rainfall affected operations.

Telix Pharmaceuticals leapt 9.8 per cent after reporting a 62 per cent jump in revenues that was driven by strong sales of its imaging agent for men with prostate cancer.

Cettire plunged 22.6 per cent after reporting weak demand from US customers owing to the impact of US President Donald Trump’s tariffs, and as earnings fell.

Insignia Financial inched up 4.8 per cent despite recording $1.8 billion in quarterly net outflows in the quarter to March after an institutional client redeemed money.