The Australian sharemarket rose to a three-month high on Tuesday as investors returned from the long weekend and piled into mining stocks, buoyed by record precious metal prices.
Trade developments also remained in focus as President Donald Trump said in a social media post that tariffs on South Korean goods, including autos, would be raised from 15% to 25%, accusing the country’s legislature of “not living up” to its trade agreement with Washington.
The S&P/ASX 200 Index climbed 81.5 points or 0.9% to 8,941.6, recovering from a 0.5% decline last week and closing at the highest levels since 29 October.
Nine of the index’s 11 sectors finished in positive territory, with Telecommunications leading the advance.
REA Group lifted 4.6% ahead of its half-year results set to be released on 6 February, while Telstra lifted 2.3%.
Meanwhile, mining stocks drove much of the market’s gains as gold and silver prices extended record rallies.
Gold traded around US$5,070 an ounce, while silver topped $114/oz.
Gold producers Northern Star and Newmont advanced 0.4% and 1.4%, respectively, while Silver Mines added 6.3% and Sun Silver gained 5.2%.
Heavyweight diversified miners closed higher, with BHP up 2.7%, while Rio Tinto and Fortescue Metals added 1.7% apiece.
Financials also provided support, with Commonwealth Bank up 0.4%, National Australia Bank adding 1.3%, Westpac gaining 0.6% and ANZ lifting 1.1%.
Among individual stocks, jewellery retailer Michael Hill International jumped 5.4% after reporting a stronger half-year profit compared with a year earlier, lifting investor sentiment towards the consumer-facing name.
Brazil-focused explorer and producer Karoon Energy pared earlier advances to gain 0.3%, despite reporting lower output in the December quarter relative to the September period.
Shares in DroneShield fell 6.5% even after the company reported a doubling in revenue in the December quarter from a year ago, suggesting profit-taking or concerns about the sustainability of growth.
Wholesale group Metcash rose 1.2% after appointing Bruce Sabatta as the new chief executive of its food service and convenience division, effective next month.
Energy producer Santos gained 2.5% after announcing it had shipped its first liquefied natural gas cargo from the long-delayed Barossa project in the Timor Sea, marking a key milestone for the development.
Healthcare technology firm Cyclopharm soared 20.5% after its lung imaging technology received a significant endorsement from leading medical professionals in the United States, boosting confidence in its growth prospects.
On the bond markets, yields moved higher. The 10-year yield rose to 4.84%, while the two-year yield increased to 4.206%.
