SYDNEY: Australian shares followed Wall Street’s upward trend, with banks and miners driving gains as U.S. President Donald Trump widened trade tariffs.

The S&P/ASX 200 index rose 0.6% to 8,587.70, recovering from a 0.6% drop the previous day.

Financial stocks led the rally, gaining 0.7%, with major banks rising between 0.4% and 1%. Mining stocks advanced 0.9% as iron ore prices remained strong.

BHP edged up 0.3%, while Rio Tinto and Fortescue increased by 0.7% and 1.5%, respectively.

Gold stocks rebounded 1.6% after a sharp decline, with Evolution Mining and Genesis Minerals rising 2.2% and 1.4%.

Energy stocks also climbed 0.5%, supported by gains in Woodside Energy and Santos.

Tech stocks mirrored overseas gains, rising 0.6%, with NEXTDC and Block Inc’s Australian shares up 1% and 2.2%. Meanwhile, New Zealand’s S&P/NZX 50 index inched up 0.1% after the central bank held rates steady.

“The market is taking lead from Wall Street’s rebound overnight where investors are shrugging off the tariff volatility to buy into growth and undervalued sectors,“ said Grady Wulff, a senior market analyst at Bell Direct.

Trump announced additional tariffs on seven countries, following earlier measures against Japan.

Australia faces a 10% baseline tariff, the minimum for U.S. trade partners. Fed minutes suggested inflation from tariffs may not delay expected rate cuts. – AFP