Top 10 at 11: ASX climbs as US-China trade relations show signs of thaw

The first signs of progress in US-China trade talks have soothed market sentiment, sending the ASX up 0.45pc in the first hour of trading.

The ASX is climbing, lifted by strength in Energy stocks as US-China trade relations show first signs of normalising. Pic: Getty Images

Morning, and welcome to Stockhead’s Top 10 (at 11… ish), highlighting the movers and shakers on the ASX in early-doors trading.

With the market opening at 10am sharp eastern time, the data is taken at 10:15, once trading kicks off in earnest.

In brief, this is what the markets have been up to this morning.

US-China relations begin to thaw

While no concrete agreement terms have been announced as of yet, both the US and China have indicated they are making progress to restore bilateral trade relations as their representatives meet in Geneva.

Chinese Vice Premier He Lifeng described negotiations with US Treasury Secretary Scott Bessent as candid and constructive according to Chinese state media, saying the two countries have agreed to a new “trade consultation mechanism”.

“Thanks to the concerted efforts from both sides, the meeting has been productive and has been an important first step taken by the two sides to properly resolve their differences through equal footed dialogue, and also for bridging differences and deepening cooperation,” He Lifeng said.

“This meeting has laid the foundation and created the conditions for that effort.”

On Saturday, Trump said the talks were “A total reset negotiated in a friendly, but constructive, manner”.

“We want to see, for the good of both China and the US, an opening up of China to American business,” he said.

Trump indicated an 80% tariff “seems right” on Friday, but left the details to the diplomatic team.

US markets retreat on Friday

US markets dipped marginally on Friday before the talks began in earnest, showcasing the uncertainty surrounding the negotiations.

Another uptick in the oil price – which lifted about 2% – buoyed energy stocks 1.1%, but healthcare stocks fell by the same amount.

The Dow fell 0.3%, the S&P500 0.1% and the Nasdaq was essentially unchanged.

It was a bad week for US stocks – the Dow fell 0.2% over the last five days, the S&P500 0.5% and the Nasdaq 0.3%.

Over in Europe, share market sentiment was more upbeat.

Energy once again led gains, up 2.0%, with resources following close behind, ticking up 0.8%.

A report from the Financial Times that Shell, Chevron, Exxon Mobil, TotalEnergies and ADNOC are considering purchasing BP lifted the stock 4.7%.

The FTSE300 gained 0.4% and was up 0.2% for the week, while the UK FTSE100 lifted 0.3% but lost 0.5% over the same period.

Energy leads ASX gains

The ASX has responded positively to thawing US-China trade relations, however minute that progress may be, lifting 0.45% as of about 10:30 AM AEST.

The Energy sector is – unsurprisingly – leading gains, up 1.69%.

Seven sectors are up and four down, with most of the pain being felt in Consumer Staples (-0.32%) and Info Tech (-0.34%).

Now, onto our winners and laggards for the morning…

WINNERS

Code	Description	Last	%	Volume	MktCap
MHC	Manhattan Corp Ltd	0.03	76%	17513720	$3,993,281
CRR	Critical Resources	0.004	33%	3150096	$7,842,664
BPP	Babylon Pump & Power	0.006	20%	2000000	$12,497,745
EM2	Eagle Mountain	0.006	20%	207095	$5,675,186
JAV	Javelin Minerals Ltd	0.003	20%	30644166	$15,115,373
VRC	Volt Resources Ltd	0.006	20%	216666	$23,423,890
LKY	Locksleyresources	0.05	19%	11347114	$6,160,000
TYP	Tryptamine Ltd	0.04	18%	2868548	$47,227,652
BNL	Blue Star Helium Ltd	0.007	17%	75000	$16,169,312
DTM	Dart Mining NL	0.0035	17%	121	$3,594,167

In the news…

Manhattan Corp (ASX:MHC) has committed to acquiring the Hook Lake copper and gold project in Canada. The project is host to some promising gold and polymetallic volcanogenic massive sulphide prospects, and already holds a non-JORC resource of 3.4Mt at 2.38 g/t gold.

While the resource estimate will need to be confirmed with modern exploration techniques, the project has produced multiple broad, high-grade intersections of mineralisation, with hits for gold, copper, zinc and lead on file.

Critical Resources (ASX:CRR) shares climbed on tapping seasoned mining executive Tim Wither as its new CEO, effective May 14.

Wither most recently served as managing director for Maximus Resources (ASX:MXR), overseeing a US$3m lithium Joint Venture with the Korean government agency KOMIR and a non-binding MOU with global battery manufacturer LG Energy Solution.

The company was acquired by Astral Resources (ASX: AAR) under a $31 million off-market takeover, representing a gold resource valuation of $93/oz gold and a 67% premium to shareholders over the 30-day volume-weighted average price (VWAP).

Similarly, shareholders have celebrated the appointment of internationally renowned healthcare executive Herwig Janssen as Tryptamine Therapeutics’ (ASX:TYP) new chair.

Janssen has held multiple senior roles at Johnson & Johnson (J&J) for over 40 years, most recently serving as vice president for Licensing & Acquisitions (Emerging Markets) at J&J Innovative Medicine.

LAGGARDS

Code	Name	Price	% Change	Volume	Market Cap
AOA	Ausmon Resorces	0.001	-50%	93750	$2,622,427
LSR	Lodestar Minerals	0.01	-44%	11078260	$5,731,629
VML	Vital Metals Limited	0.002	-33%	30000	$17,685,201
DY6	Dy6Metalsltd	0.1	-26%	928143	$7,902,337
GGE	Grand Gulf Energy	0.003	-25%	1630383	$11,201,549
MRD	Mount Ridley Mines	0.002	-20%	1038000	$1,946,223
MEM	Memphasys Ltd	0.005	-17%	333923	$11,901,589
MTB	Mount Burgess Mining	0.0025	-17%	324577	$1,055,108
DAL	Dalaroometalsltd	0.027	-16%	297666	$7,966,462
PLN	Pioneer Lithium	0.11	-15%	1	$5,533,019

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Top 10 at 11: ASX climbs as US-China trade relations show signs of thaw