Hang Seng Index and ASX 200: Markets Cheer Tariff Relief, Tech Stocks Surge

Australia’s ASX 200 Index advanced by 0.66% on Tuesday morning, tracking gains in Dow futures. Banking, mining, gold, and tech stocks contributed to the gains.

National Australia Bank (NAB) rallied 2.05%, with ANZ (ANZ) advancing by 1.76%. Bank stocks benefited from falling US Treasury yields, which increased demand for high-yielding Australian banks.

Mining giant BHP Group Ltd. (BHP) gained 0.87% as iron ore spot prices rose 0.38% on Tuesday. Hopes of the US and China averting a trade war bolstered iron ore’s demand outlook.

Outlook: Risks and Opportunities

Global markets remain sensitive to geopolitical and economic uncertainties after Trump’s inauguration. Key factors include:

• US-China trade relations and tariff announcements.
• Strong US economic data could challenge market expectations for Fed rate cuts.
• China’s stimulus measures to sustain domestic growth.

While central banks’ cautious policies may provide stability, investors should closely monitor trade policies, inflation trends, and monetary signals to navigate market volatility. Discover strategies to navigate this week’s market trends here.