ASX closes higher as BHP, Fortescue rally, Nvidia sentiment lifts tech sector
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The news: The Australian sharemarket finished higher its largest miners surged and the tech sector lifted following Nvidia’s release of better than expected earnings, soothing market fears of an AI bubble.
The benchmark ASX 200 rose 1.24% to end at 8,552.7 with nine of the 11 sectors finishing in the green.
The materials sector (+2.5%) was the best performer as BHP (+1.9%), Fortescue (+4.2%) and Rio Tinto (+2.2%) finished higher. Lithium and rare earth producers surged on a positive outlook for the critical minerals, including Iluka Resources (+6.8%).
Liontown Resources (+9.6%) completed the first digital spot sales auction for spodumene concentrate from its Kathleen Valley mine, while Mineral Resources (+4.5%) scrapped a timeline for finding a successor to CEO Chris Ellison.
The tech sector (+2.4%) was buoyed by better than expected Q3 Nvidia earning result. Block (+10.9%), Wisetech Global (+2.3%), Xero (+1.6%), Technology One (+4.7%), NextDC (+2.4%) and LIfe360 (+4.4%) were among those that finished higher.
Betashares Investment Strategist Hugh Lam told Capital Brief that "Nvidia's stronger than expected results should put a floor under the recent ASX tech sector slump as sentiment stabilises, particularly given the market's risk-off posture in recent weeks".
"While we may see a modest re-rating in Aussie growth names, such as those in the software, AI, or data infrastructure verticals, a sustained recovery will ultimately come back to earnings growth and profitability, alongside a favourable macro backdrop," Lam said.
Biggest movers:
- Charter Hall Group (+6.7%) – Upgraded its earnings guidance for the 2026 financial year, noting heightened investment activity across its property investments and funds management platform.
- Sonic Healthcare (+6.3%) – Reiterated FY26 EBITDA guidance and lowered guidance for depreciation and interest expenses.
- DroneShield (-4.1%) – Share price continued to suffer after it responded to an ASX query defending a move by three of its directors, including CEO Oleg Vornik, to sell all their stock. New filings also indicated that they sold $8.76 million worth on the day an incorrect contract announcement was issued.
- Worley (-3.2%) – Flagged that full-year earnings would skew “more heavily” to the second half of the year than seasonally expected amid one-off restructuring costs.
Other news:
- A2 Milk (+0.9%) – Upgraded its FY26 revenue guidance, after a stronger-than-expected start to the year across its infant milk formula, other nutritionals, and liquid milk product categories.
- Magellan Financial (-0.7%) – Head of global equities Arvid Streimann has resigned effective 19 November following an investigation into an alleged relationship with a junior employee.
What’s ahead:
- The US Bureau of Labor Statistics will release employment data for November on Friday at 12:30am AEDT. It will not release October unemployment data, which was delayed due to the US government shutdown.
