ASX down 1.7% as Trump's 'Liberation Day' tariffs kick in
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More news: The Australian sharemarket was down 1.7% as US President Donald Trump's "reciprocal" tariffs — including 10% on Australian goods and a total 104% levy on imports from China — came into effect at 2pm AEST.
The benchmark S&P/ASX 200 index was 128.1 points lower at 7,381.9, having hovered between declines of 1% to 2% for much of the session.
All 11 sectors were in the red. Healthcare was the worst performing sector, down 3.4% with biotech CSL dropping 5% after Trump announced plans for a major tariff on pharmaceutical imports. Materials (-3.4%) and energy (-3.3%) stocks also declined sharply.
Oil giants Santos (3.8%) and Woodside Energy (2.8%) were both down after oil prices fell to their lowest level in more than four years.
Mining giants Fortescue (-4.9%), Rio Tinto (-4.6%) and BHP (-3.3%) all retreated as iron ore futures descended, while Nickel Industries, Mineral Resources and Champion Iron all shed more than 10%.
The Australian dollar fell to its lowest level since March 2020 before recovering slightly. It was last buying 59.6 US cents.
Offshore, Japan's Topix index (-2.8%) and Hong Kong's Hang Seng (-1.6%) both dropped as the Shanghai Composite (0.2%) lifted.
ASX pares early losses; MinRes leads mining selloff
More news: The Australian sharemarket trimmed early losses of nearly 2% as mining and energy stocks plunged in response to fresh US tariffs on China.
The benchmark S&P/ASX 200 index was down 77.8 points or 1.04% to 7,432.2 at midday AEST, with nine of 11 sectors in the red.
Mining stocks were down 3.1%, with Mineral Resources (-10.9%), Nickel Industries (-10.1%), Champion Iron (-9.2%), Alcoa Corporation (-9.4%), and Capstone Copper (-8%) making up the five worst performers across the ASX 200 index.
Iron ore giants Fortescue (-5%), Rio Tinto (-3.9%) and BHP (-3.1%) also lowered as iron ore futures fell 2.4% on the Singapore Exchange.
The energy sector, down 2.8%, was the next worst hit. Oil producers Santos (-3.7%) and Woodside Energy (-2.4%) both tracked a drop in crude prices. Global benchmarks Brent and West Texas Intermediate were down 3.5% and 3.9% respectively.
Healthcare stocks fell 2%, weighed down by the sector's largest company CSL (3.3%), as US President Donald Trump has said the US will soon announce a major tariff on pharmaceutical imports.
Meanwhile, the financial sector lifted 0.7% as insurance groups IAG (1.9%) and Suncorp (1.1%), and big four lender National Australia Bank (1%), all advanced.
The Australian dollar fell below 60 US cents, and was last buying 59.8 US cents.
Australian shares fall nearly 2% at open as trade tensions escalate
The news: The Australian sharemarket has dropped sharply in early trading as investors braced for an escalation in global trade tensions after the US said it would move ahead with outsized tariffs on China.
The numbers: The benchmark S&P/ASX 200 index was down 143.90 points or 1.92% to 7,366.10 within the first few minutes of trade, with all but one of its 11 sectoral indices in red.
The context: The biggest declines were concentrated in materials, energy, technology and consumer stocks over worries about the fallout of the trade war between the world’s two biggest economies.
Top miners BHP, Rio Tinto and Fortescue Metals Group were down more than 4% each, while energy majors Woodside and Santos also dropped nearly 4% each. The Big Four banks were all trading around 2% lower. Technology stocks including WiseTech and Xero lost nearly 3% each, while appliances maker Breville Group was down 6%.
The slide in the local market follows a drop in US stock futures in after-hours trading following a decline overnight, after the White House said sweeping tariffs against all countries are still expected to go into effect on the 9 April deadline and confirmed 104% tariffs on Chinese imports.
