AUSTRALIAN shares jumped more than 6% on Thursday heading for their best session since the pandemic began, after investors, who were worried about the fallout of a global trade war, picked up hammered stocks following U.S. President Donald Trump's announcement of a pause in many of his tariffs.
The S&P/ASX 200 index surged as much as 6.3% to 7,842.90 points at 0025 GMT and was headed for its second-best day ever, if gains hold. The benchmark recouped some losses after billions were wiped out after Trump announced tariffs last week.
Trump declared a 90-day pause on many of his new tariffs that he unveiled initially last week, while raising the duties on China to 125% from the 104% level after the world's second largest economy retaliated with a 84% levy on U.S. goods.
The change in rhetoric from the United States came less than 24 hours after the tariffs kicked in, which had sent global markets into a tailspin on fears of a global economic slowdown following the tariff announcement after U.S. markets closed Wednesday last week.
For the markets, the “developments will embolden them to look through tariff headlines, and that may see volatility calm down in coming days,“ ANZ analysts said in a note.
Local commodity-focused companies rebounded with mining stocks, which have about 20% weightage on the benchmark, climbing 7%, heading for their best day since late March 2020.
Shares of mining giants BHP Group and Rio Tinto climbed 6.9% and 7.3%, respectively. Fortescue rose 7.2%.
Energy stocks jumped 7.3% after oil prices surged more than 4% overnight. Heavyweights Woodside Energy and Santos jumped 7.9% and 6% respectively.
Gold stocks surged 4.5% to hit an all-time high.
Banking stocks jumped 5.5%, heading for their best day since May 2020. The “Big Four” banks climbed between 3.9% and 6.2%.
Tech stocks rose 8.6% in what could be their best day since early November 2011.
New Zealand's benchmark S&P/NZX 50 index rose 3.9% to 12,263.77 in what could be their best day since late March 2020.
