ASX ends higher after good news from China and Japan

Unexpected news from China and Japan helped the ASX record better than expected results on Tuesday.

Those bracing for a tough day on the Australian share market breathed a sigh of relief after the ASX closed on a high after a mammoth trading day, thanks in part to good news from overseas.

The ASX200 gained 28.00 points or 0.38 per cent to 7,305.00 on Tuesday, reversing Monday’s trading that had it reach a new 20-day low.

Credit for the wind in the sails of the share market goes to Japan and China with both countries revealing better than expected news, according to market analyst Tony Sycamore.

Traders were “braced” for a tough day that didn’t eventuate, according to market analyst Tony Sycamore. Picture NCA Newswire/ Gaye Gerard

The Japanese economy grew by 1.5 per cent for the quarter and at an annual rate of 6.0 per cent, much higher than market expectations.

Meanwhile, the Bank of China caught the market by surprise and cut the benchmark 1-year lending rate by 15 basis points from 2.65 per cent to 2.50 per cent.

“Most people were probably braced for a pretty tough day and things certainly took a turn for the better with the Japanese GDP coming in better than expected and the Chinese authorities cut rates there, which was biggest cut there since 2020,” Mr Sycamore said.

“ … it could have been quite an ugly day if we hadn’t seen that, so we live to fight another day,” he added.

The top gainer on Tuesday was Lake Resources which rose 16.67 per cent to $0.25 and the biggest loser was Syrah Resources which fell 5.15 per cent to $0.65.

Alongside the good news from Asia was the release of the Reserve Bank board’s minutes from its August meeting which signalled it may again keep rates on hold, but was keeping a rate hike in mind if inflation wasn’t contained.

Aiding the boost to the ASX today was the release of wages data from the June quarter, with wages rising by 0.8 per cent or 3.6 per cent year-on-year, just below market expectations.

Eight out of 11 sectors ended higher on Tuesday led by healthcare which rose 3.16 per cent and IT which rose 1.76 per cent.

The boost to healthcare comes as Cochlear and CSL reveal their yearly earnings.

Bio-tech giant CSL surged by 3.726 per cent to $272.80 after the company reported a 10% increase in underlying profits to $US2.61bn.

The top gainer today was Lake Resources which rose 16.67 per cent and the biggest loser was Syrah Resources which fell 5.15 per cent. Picture NCA Newswire/ Gaye Gerard

“CSL is a massive one because it’s a popular one with mums and dads and it obviously makes up a huge part of the healthcare sector, so it’s a it’s one which we keep an eye on,” Mr Sycamore said.

Meanwhile, Cochlear soared by 5.69 per cent per cent to $246.47 following its earnings report release that showed a 4.00 per cent increase in annual profit to $300.5m.

NAB was the winner out of the big four banks today on the back of its latest trading update, rising by 1.31 per cent to finish trading at $28.70.

The bank reported third-quarter earnings of $1.9bn, a figure that’s 5.8 per cent higher year-on-year but had declined 5 per cent compared to the December and March Quarters.

Westpac also rose today, trading 0.27 per cent higher at $21.97.

Meanwhile CommBank and ANZ trailed behind, dipping 0.18 per cent and 0.20 per cent respectively.

The big miners saw mixed results today with Fortescue adding 0.97 per cent at $20.82, BHP trading lower at $44.62, and Rio Tinto trading 044 per cent lower at $106.05.

The prospect of higher unemployment and a 16.00 per cent fall in profits to $203m saw the share price of job-finding company Seek tumble 5.15 per cent to $24.66.

Life 360 added 12.34 per cent to $9.01 after the company reported an EBITA of $US5.7 million and a 45 per cent increase in revenue to US$70.8m.

Originally published as ASX ends higher after good news from China and Japan