The Australian sharemarket finished modestly higher on Monday, buoyed by optimism over global trade negotiations and a strong lead from Wall Street on Friday.
The S&P/ASX 200 Index finished 28.1 points or 0.3% higher at 8,542.3, with 10 of the 11 sectors finishing in the green.
Healthcare and Consumer Discretionary sectors led the advance, echoing Wall Street’s rally on Friday, where the S&P 500 closed at record highs.
Sentiment was lifted after United States President Donald Trump suggested over the weekend that the July 9 tariff deadline for trade partners may not need to be extended.
Among those engaged in talks with Washington, India extended its visit to reach an agreement, Canada withdrew its proposed digital services tax to restart negotiations, and Taiwan reported “constructive progress”.
Locally, Healthcare stocks rallied with CSL adding 2.2%, Pro Medicus up 1.6%, and Sigma Healthcare gaining 1.4%.
Consumer discretionary stocks lifted, with Tabcorp, Aristocrat Leisure, Wesfarmers, and JB Hi-Fi gaining 2.1%, 1.3%, 0.7%, and 1.6%, respectively.
Financials also ticked higher overall, with Macquarie Group rising 3.9%, while ANZ slipped 0.1% and Commonwealth Bank dipped 0.3%.
In company news, James Hardie surged 7.1% after shareholders of U.S.-based Azek approved a $14 billion acquisition, paving the way for James Hardie to shift its primary listing to the New York Stock Exchange.
Drone technology company DroneShield slipped 4.2%, giving back part of last week’s 33% surge despite announcing a new A$9.7 million defence contract in Latin America.
Broadband provider Superloop gained 1% after reporting expected full-year underlying earnings of $91 million, above its prior guidance range of $83 million to $88 million.
Star Entertainment tumbled 6.9%, after its Hong Kong investors threatened to withdraw from the deal for Brisbane’s new Queen’s Wharf casino and hotel project.
On the bond markets, yields declined, with the 10-year Australian government bond rate falling 0.4% to 4.166% and the 2-year yield down 0.9% to 3.221%.
