ASX hits three-week high ontech and miners; AGL drops on demerger U-turn

ASX hits three-week high on tech and miners. A2 Milk and Bubs surge on US baby formula plans, AGL dips on demerger U-turn, ASIC sues ANZ and Rex calls Qantas a 'bully'.

Trading may be subdued at the start of the week with Wall Street closed Monday for Memorial Day holiday. Picture: Nikki Short / NCA NewsWire

Welcome to the Trading Day blog for Monday, May 30. The Australian share market surged to a three-week high as US futures gains added to bullish leads from Wall Street amid easing Covid-19 outbreaks in China.

The benchmark S&P/ASX200 index closed 1.5 per cent or 103.90 points higher to 7286.6 as Tech stocks and miners lead gains as utilities fell on AGL.

ASX SPI 200 futures were up 1.2 per cent to 7271, though the trading may be subdued with the US market closed for Memorial Day holiday.

US stocks climbed Friday after government data showed signs that US inflation started to wane in April, with the smallest increase since late 2020.

The Dow Jones Industrial Average jumped 1.8 per cent, the S&P 500 surged 2.5 per cent and the tech-heavy Nasdaq climbed rallied 3.3 per cent.

Among commodities, base metals were also higher, climbing as much as 4 per cent led by gains in nickel.

Global oil prices  advanced with Brent crude up 1.7 per cent to $US119.43 a barrel and US Nymex crude oil adding 0.9 per cent to $US115.07 a barrel. And iron ore futures were 0.7 per cent higher to $US133.41 a tonne.

The Australian dollar was trading around US71.965c near the US close.