The sharemarket closed higher on Tuesday amid reports that the US is planning a more targeted approach to reciprocal tariffs and despite a late sell-off in Australian iron ore miners and banks.

The S&P/ASX 200 edged up 0.1 per cent, or 5.6 points, to 7942.5 points at the market close, extending gains into a fourth session. The All Ordinaries rose by a similar amount as eight of the 11 sectors climbed, paced by technology stocks.

US equities staged a relief rally overnight after President Donald Trump told reporters he could give “a lot of countries breaks” from tariffs due on April 2.
The comments spurred a rotation out of US government securities back into risk assets with the VIX, Wall Street’s so-called fear index, falling to the lowest level in more than a month.

‘A relief rally’

The technology-heavy Nasdaq jumped 2.3 per cent as investors piled back into the heavily beaten-up sector. Tesla notched its best day this year, surging 11.9 per cent, while the S&P 500 Index closed 1.8 per cent higher.

The tech rally spilled over to the ASX, with WiseTech adding 3.8 per cent to $85.18. Xero and TechnologyOne also gained more than 1 per cent.

IG analyst Tony Sycamore said the shift in Trump’s tone around tariffs had sent traders flocking back to equities after a period of heavy selling.

“Since mid-March – when US President Trump threatened a 200 per cent tariff on EU wine and briefly raised Canada’s tariff rate to 50 per cent – there has been a noticeable softening in Trump’s hawkish tariff rhetoric, coinciding with a relief rally in global equity markets,” IG analyst Tony Sycamore said.

Profit-taking in banks saw the ASX pare back some of its earlier gains late in the session. ANZ retreated 3.2 per cent to $28.59 and Westpac and ANZ posted modest losses, while Commonwealth Bank closed up 0.7 per cent at $148.63.

Iron ore miners also weighed in the afternoon session after a swath of Chinese steelmakers cut production to stave off a steel supply glut. Among them was China Baowu Steel Group which has a long-standing relationship with Rio Tinto.

Rio posted a modest loss, while BHP edged 0.7 per cent lower to $39.04, while Fortescue dropped 1.3 per cent to $16.09. Iron ore also turned lower in Singapore trading.

Elsewhere in commodities, Brent crude topped $US73 a barrel for the first time this month after Trump threatened to hit nations purchasing crude from Venezuela with a 25 per cent tariff, igniting the possibility of supply disruptions.

Stocks in focus

In corporate news, James Hardie shares hit a 21-month low, sinking 5 per cent and closing at $37.99. Investors continued to punish the stock on concerns the company’s $14 billion bid for Azek was excessive and after Macquarie downgraded the shares to “neutral”.

Gold Road Resources leapt 13.9 per cent to $2.79 after rejecting an unsolicited $3.3 billion takeover offer from Gold Fields.

New Hope retreated 3.6 per cent to $3.79 after downgrading the conversion price on $300 million worth of convertible bonds for the second time, from $6.55 a share to $6.24.

Helia advanced 1.4 per cent to $3.66 after Macquarie upgraded the stock to “neutral”. The investment bank said Helia’s valuation reflected a”more appropriate balance” of risk and price after the stock tumbled more than 25 per cent in the prior session.