ASX opens higher on tech-led rally
Make us a preferred source
Make us a preferred source on Google
More news: Australian shares opened higher, lifted by gains across the tech, healthcare and mining sectors.
The benchmark ASX 200 was up by 47.4 points, or 0.52%, to 9,175 at 10:31am AEDT. Seven of the 11 sectoral indices opened in the green.
Tech (+3.57%) was the best performing sector, led by rallies in WiseTech (+5.55%), Xero (+3.01%), NextDC (+4%) and Technology One (+2.77%).
IDP Education (+14.27%) was the best performing stock across the ASX 200 after lifting its full year earnings forecast despite reporting a lower interim profit.
Cleanaway Waste Management (+10.41%), Ramsay Healthcare (+10.21%) and Sigma Healthcare (+7.02%) rallied after posting higher year-on-year profit growth.
Super Retail (+7.96%) also jumped despite delivering a 19.8% drop in interim profit.
Elsewhere, energy (-0.93%) was the worst performing sector, led by a slump in Yancoal (-9.42%), Paladin (-1.86%), Deep Yellow (-2.90%) and Karoon Energy (-2.75%) after reporting a 2% drop in full-year profit.
Australian shares to open higher after tech-led Wall St rally
The news: Australian shares are set to open higher after Wall Street extended its tech-led rally on Wednesday, with US indices touching two-week highs ahead of Nvidia’s after-market quarterly results, as concerns over artificial intelligence disruption and costs eased on renewed optimism about the technology’s potential benefits.
The numbers: Updated at 7:48am AEDT:
- ASX futures: up 57 points to 9,137.
- Wall Street: Dow Jones up 0.64%, S&P 500 up 0.82% and the Nasdaq up 1.29%.
- Europe: CAC 40 up 0.47%, DAX up 0.76% and FTSE 100 up 1.18%.
- Spot gold: up 0.68% to USD5,176 per ounce.
- Oil prices: Brent up 0.13% to USD70.87/bbl and US WTI down 0.25% to USD65.46/bbl.
- AUD: up 0.89% at 71.20 US cents.
- Bitcoin: up 8.03% to USD69,177.
The context: All three US major indices traded higher overnight, with AI-related names and software stocks continuing to rebound from Monday’s sell-off, as markets brace for Nvidia’s quarterly results.
Nvidia’s earnings are seen as a key test for the tech sector, amid questions over whether recent AI-related sell-offs have been overdone. The chipmaker is expected to report year-on-year earnings growth of 72.2% on revenue of USD66.2 billion, according to analysts polled by Reuters, as demand for AI infrastructure continues. Nvidia shares rose 2.19% ahead of its quarterly report.
Investors also eyed other potential beneficiaries of the AI boom, with Western Digital, Palantir and Applied Materials rising 6.85%, 3.79% and 4.56% respectively. The S&P Software & Services index rebounded from its 23% year-to-date decline, outperformed with a 2.77% gain.
Locally, Atlas Arteria, Karoon Energy, Cleanaway Waste Management, IDP Education, Ramsay Health Care, Qantas Airways and Super Retail Group are among companies to report earnings today.
