ASX rises as trade tensions ease; WiseTech in U.S.A
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Australian equities ended the week on a strong note, following Wall Street's positive lead and supported by early signs of easing in U.S.–China trade tensions. The S&P/ASX 200 Index rose 1.13%, or 92.4 points, to close at 8,238, as risk appetite improved on the back of diplomatic overtures between Beijing and Washington.
Market sentiment was buoyed by reports that China has urged the U.S. to show "sincerity" by lifting unilateral tariffs as a condition for restarting formal negotiations. While optimism around a renewed dialogue has returned, analysts cautioned that the path to resolution may be volatile. Woei Chen Ho, economist at United Overseas Bank, noted that negotiations are unlikely to be smooth and may reintroduce market swings in the coming weeks.
Domestically, economic data offered mixed signals. Online retail sales growth decelerated in March, rising 0.4% month-on-month on a seasonally adjusted basis, compared to a revised 1.4% in February, according to NAB. Broader retail trade posted a 0.3% monthly increase for March, following 0.2% growth in February, according to the Australian Bureau of Statistics. Meanwhile, producer prices excluding exports rose 0.9% in the March quarter, up from 0.8% in the previous period, reflecting persistent cost pressures in domestic supply chains.
In corporate developments, WiseTech Global (WTC) confirmed it is engaged in early-stage discussions as part of a strategic review launched by U.S.-based supply chain software firm e2open. While details remain limited, the move signals WiseTech’s continued ambition to expand its global logistics footprint through M&A activity. Shares of WiseTech advanced 0.67%. Elsewhere, Rio Tinto (RIO) faced investor pushback after shareholders rejected a proposal by activist hedge fund Palliser Capital calling for an independent review of the company’s dual-listed structure. The result signals continued support for the current governance model, despite ongoing scrutiny from minority investors.
Block (XYZ) was among the session’s worst performers after the company issued a downgrade to its full-year profit guidance, citing weaker-than-expected first-quarter results. Shares collapsed 27%, hitting an all-time low at market close, as investor confidence in the firm’s earnings outlook deteriorated sharply. The broader rebound in the ASX was underpinned by cyclical sectors and optimism around geopolitical developments, but caution remains warranted. With trade negotiations potentially re-entering the spotlight, volatility is expected to remain elevated in the near term. Investors will be closely monitoring updates from Washington and Beijing, as well as upcoming data that could influence the Reserve Bank of Australia's policy stance.
Market sentiment was buoyed by reports that China has urged the U.S. to show "sincerity" by lifting unilateral tariffs as a condition for restarting formal negotiations. While optimism around a renewed dialogue has returned, analysts cautioned that the path to resolution may be volatile. Woei Chen Ho, economist at United Overseas Bank, noted that negotiations are unlikely to be smooth and may reintroduce market swings in the coming weeks.
Domestically, economic data offered mixed signals. Online retail sales growth decelerated in March, rising 0.4% month-on-month on a seasonally adjusted basis, compared to a revised 1.4% in February, according to NAB. Broader retail trade posted a 0.3% monthly increase for March, following 0.2% growth in February, according to the Australian Bureau of Statistics. Meanwhile, producer prices excluding exports rose 0.9% in the March quarter, up from 0.8% in the previous period, reflecting persistent cost pressures in domestic supply chains.
In corporate developments, WiseTech Global (WTC) confirmed it is engaged in early-stage discussions as part of a strategic review launched by U.S.-based supply chain software firm e2open. While details remain limited, the move signals WiseTech’s continued ambition to expand its global logistics footprint through M&A activity. Shares of WiseTech advanced 0.67%. Elsewhere, Rio Tinto (RIO) faced investor pushback after shareholders rejected a proposal by activist hedge fund Palliser Capital calling for an independent review of the company’s dual-listed structure. The result signals continued support for the current governance model, despite ongoing scrutiny from minority investors.
Block (XYZ) was among the session’s worst performers after the company issued a downgrade to its full-year profit guidance, citing weaker-than-expected first-quarter results. Shares collapsed 27%, hitting an all-time low at market close, as investor confidence in the firm’s earnings outlook deteriorated sharply. The broader rebound in the ASX was underpinned by cyclical sectors and optimism around geopolitical developments, but caution remains warranted. With trade negotiations potentially re-entering the spotlight, volatility is expected to remain elevated in the near term. Investors will be closely monitoring updates from Washington and Beijing, as well as upcoming data that could influence the Reserve Bank of Australia's policy stance.