The Australian share market surged to a fresh record close on Tuesday, as investors shrugged off renewed tariff threats from United States President Donald Trump and found optimism in slightly stronger-than-expected Chinese economic data.
The benchmark S&P/ASX 200 Index rose 59.9 points, or 0.7%, to finish at a record 8,630.3, with 10 of the 11 sectors in positive territory.
The Information Technology sector led gains, buoyed by a strong performance from Life360, which soared 8%, followed by Block, up 5%.
Other tech names, including Xero, TechnologyOne, and Wisetech Global added 1.2%, 2.6%, and 1.8%, respectively.
Gains on Wall Street overnight supported local sentiment. The S&P 500 edged higher after Trump said he was open to resuming trade negotiations, even as he reiterated plans to impose 30% tariffs on goods from Mexico and the European Union starting 1 August, unless more favourable terms can be reached.
On the domestic front, the latest Westpac consumer sentiment index posted a slight improvement but remained in ‘cautiously pessimistic’ territory.
China’s economy also provided a tailwind, expanding at a 5.2% annual rate in the second quarter, surpassing economists’ expectations.
Among other major movers, the healthcare sector rallied, with CSL up 3.8% and Pro Medicus gaining 2.4%.
Materials fell 0.4% overall as heavyweight miners BHP fell 0.9%, Fortescue lost 0.7%, and Rio Tinto down 1.3% amid softer iron ore prices.
In corporate news, Hub24 jumped 6.4% after the wealth platform reported A$112.7 billion in funds under management (FUM) as of 30 June, a 10% quarterly increase.
Meanwhile, Tyro Payments slumped 2.7% after plunging more than 10% earlier in the session. The decline followed a surprise announcement from the Reserve Bank, banning surcharges on all debit and credit transactions across eftpos, Mastercard and Visa networks, pressuring the payments provider’s revenue model.
On the bond markets, 10-year yields rose 0.5% to 4.383%, while 2-year yields dipped 0.2% to 3.425%.
