ASX closes in the green as big miners and energy stocks gain

Welcome to your five-minute recap of the trading day.

The numbers

The Australian sharemarket closed in positive territory on Friday, reversing a soft start to the trading day after a rise in the big miners’ shares helped to drive the bourse higher.

The ASX 200 closed 13 points, or 0.2 per cent, higher at 7982 points, with seven of the 11 industry sectors in positive territory. The Australian dollar was trading at 62.8 US cents

The Star Casino in Sydney will continue to have its licence suspended until at least September 30.Credit: Paul Harris

The lifters

The miners moved higher, led by Rio Tinto (up 1 per cent). BHP added 0.1 per cent, but Fortescue reversed early gains to end the day down 1.2 per cent. Gas players lifted, with Santos up 1.6 per cent and AGL gaining 0.7 per cent. Woodside Energy also gained 0.9 per cent. Opposition Leader Peter Dutton had unveiled his gas reservation policy, aimed at driving down energy prices, on Thursday night in his budget reply speech.

The big four banks finished Friday in positive territory, with the nation’s biggest lender – Commonwealth Bank – up 0.3 per cent. Westpac (up 0.8 per cent), NAB (up 0.2 per cent) and ANZ (up 0.5 per cent) all gained ground.

On Friday morning, Westpac chief executive Anthony Miller said the bank will spend $600 million on its Unite program this financial year, as part of a multi-year plan aimed at simplifying and consolidating all the bank’s technology.

The laggards

Technology was the weakest sector, falling 2.2 per cent, while real estate stocks lost 1.6 per cent.

The NSW Independent Casino Commission notified The Star on Friday that its licence will remain suspended and the NICC-appointed manager Nick Weeks will continue to have oversight of casino operations until at least September 30, 2025, at which time the NICC will reassess The Star’s suitability to regain its casino licence.

Weeks’ role was due to expire on March 31, and the NICC had sought submissions from both The Star and the manager in relation to The Star’s suitability to hold a casino licence in NSW. Shares in the embattled gaming giant remain suspended as it scrambles to survive.

The Australian Competition and Consumer Commission also gave its final approval for a tie-up between Virgin Australia and Qatar Airways, a deal that will result in more flights between Australian cities and Doha. Qantas shed 0.7 per cent on Friday.

The lowdown

Overnight, Wall Street edged lower after getting pulled in opposite directions as US President Donald Trump’s latest tariff escalation created winners and losers among US auto stocks. General Motors sank 7.4 per cent, in one of the market’s sharper losses, after Trump announced 25 per cent tariffs on imported cars. Ford Motor dropped 3.9 per cent.

Diana Mousina, deputy chief economist at AMP, said the new auto tariffs in the US had unnerved markets during the week.

“While tariffs will target foreign-made goods, the issue is that the car manufacturing processes span multiple borders. Some US-based auto firms, like Ford and General Motors, may still be impacted despite being a local business because parts for cars will be derived offshore,” Mousina said. “[It] looks like Tesla may be the only beneficiary from these new tariffs … although its share price also fell after the announcement.

Wall Street lost more ground on Wednesday. Credit: Bloomberg

“Financial markets are sensitive to news around tariffs, so it’s likely that shares will have more downside next week on April 2 [when Trump is set to provide more details on his tariff plans].”

“While the details are up in the air, our view is that investors should expect a further rise in US tariffs in the near-term,” she said.

Automakers based outside the United States also sank. In Seoul, Hyundai Motor Company fell 4.3 per cent. In Tokyo, Honda Motor fell 2.5 per cent while Toyota Motor lost 2 per cent. Rivian rallied 7.6 per cent, and Elon Musk’s Tesla added 0.4 per cent after paring an earlier, bigger gain.

The S&P 500 slipped 0.3 per cent after drifting between small gains and losses several times through the day. Better-than-expected data on the economy also helped support the market. The Dow Jones dipped 155 points, or 0.4 per cent, and the Nasdaq composite fell 0.5 per cent.

Among the uncertainties are how the US government will determine how to apply tariffs to parts that are compliant with the free-trade agreement the United States and Mexico and Canada have, but are not made entirely within the United States. Tracking parts could be difficult.

Hopes are still high that Trump may ultimately opt for more targeted or milder tariffs that are less painful for the global economy than feared. But even if he does, the talk about tariffs has already made US consumers and businesses feel more cautious and pessimistic. If such sour moods convince them to pull back on their spending, it could hurt the economy.

So far, the economy has seemed to be holding up.

Tweet of the day

Quote of the day

“If there’s only one thing you gleaned from the budget – and it is the new tax cuts – that’s exactly what the government wanted. The clock is ticking for Prime Minister Anthony Albanese, who on Friday called a federal election for May 3. That means a sweetener – such as a promise to let you keep more of your pay – is perfectly timed to nudge voters its way.”

That’s Millie Muroi on looking beyond Labor’s budget tax cuts. You can read more of her piece here.

with AP

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