Australian shares are poised for gains at the open, despite lingering disappointment over China's latest stimulus efforts to revive its economy.
ASX futures fluctuated overnight, swinging between positive and negative territory, before rising 15 points near 7am AEDT following Wall Street’s strong performance.
Oil prices dropped over 4%, reflecting the market's disappointment with China's more modest-than-expected stimulus plans.
China, the world's largest crude importer, has seen reduced market enthusiasm, leading to profit-taking after last week's oil price surge following Iran's attack on Israel.
Iron ore prices also plunged in Singapore trading, contributing to declines in the U.S.-listed shares of major mining companies BHP and Rio Tinto. Both saw significant losses on Wall Street.
Overnight in the U.S., the Dow Jones gained 0.3%, the S&P 500 rose by 1%, and the Nasdaq advanced by 1.5%.
Investors appeared unfazed by developments in China, instead focusing on gains led by Nvidia, which surged 4.1%.
Nvidia’s stock has rallied nearly 15% over the last five sessions, driven by optimism over its dominance in the artificial intelligence market. The tech giant is approaching its record high, having more than doubled its value this year.
On the bond markets, 10-year and 2-year rates were at 4.203% and 3.804%, respectively.