ASX rises amid hopes of US-China trade deal

The sharemarket has risen on Monday following a strong session on Wall Street from a softer inflation report that has bolstered expectations of an imminent interest rate cut from the US Federal Reserve, as well as signs of a possible US-China trade deal that would pause steeper American tariffs and Chinese rare earths export controls.
The S&P/ASX 200 Index gained 37 points, or 0.4 per cent, to 9056 in the opening five minutes of trade, with eight out of the 11 sectors in the green, led by industrials and financials.
US officials said they expect China to delay introducing export curbs on rare earths, after two days of talks in Malaysia raised hopes that Donald Trump and Xi Jinping would agree to extend a trade truce at their high-stakes summit this week. Encouraging signals from both sides were a contrast from recent weeks, when Beijing's announcement of new export restrictions and Trump's reciprocal threat of staggering new tariffs threatened to plunge the world's two largest economies back into an all-out trade war.
This came after the S&P 500 Index briefly topped 6800 points on Friday (Saturday AEDT ) from data showing the slowest pace for underlying inflation in three months. While the Fed was widely expected to ease borrowing costs on Wednesday (Thursday AEDT ), the September price figures have upped the odds for another cut in December that would be a boon for stocks and, typically, the gold price.
Other major central banks meeting this week include the European Central Bank, the Bank of Canada and the Bank of Japan.
Capital.com market analyst Kyle Rodda said this week would set the tone for the rest of the year in financial markets. "It's a collision of the three biggest drivers of the markets right now: US rate cuts, trade policy uncertainty, and US tech profits."
On the ASX, the big four banks led the local bourse higher amid a risk-on sentiment. Commonwealth Bank and National Australia Bank both gained 1.3 per cent, while Westpac edged up 1.1 per cent, and ANZ 1 per cent.
Industrials also gained, with Qantas up 2.4 per cent, Brambles 1.9 per cent, Worley 1.5 per cent, Austal 4.1 per cent, DroneShield 5.3 per cent, and Reece 2.9 per cent.
Gold miners were mixed after spot gold fell 0.3 per cent to $US4098 an ounce. Newmont came off 1.7 per cent, but Evolution gained 2.1 per cent, while Northern Star rose 1.6 per cent, and Greatland and Capricorn both edged up 1.2 per cent.
Rare earths stocks continued to fall amid profit taking following a spike last week when Prime Minister Anthony Albanese and Trump signed a framework which guaranteed a floor on rare earth prices for new producers and blocks asset sales on security grounds. Arafura came off 4.8 per cent, while Australian Rare Earths dropped 3.8 per cent, and Australian Strategic Minerals plunged 9.1 per cent. Lynas fell 1 per cent.
Stocks in focus
PolyNovo gained 1.2 per cent after the company reported that long-serving chairman David Williams had resigned with immediate effect.
Viva Energy fell 1.9 per cent on news that falling tobacco sales attributed to packaging law changes had weighed on the fuel retailer's convenience store sales.
Nuix tanked 15.1 per cent after reporting that chief executive Jonathan Rubinsztein would step down at the end of the month.
Ramelius Resources plunged 8.9 per cent, having reported on Monday that it produced 55,013 ounces of gold in the September quarter, marking a nearly 25 per cent drop from the previous quarter.
And Netwealth rose 1.1 per cent. The company has asked the federal government for assistance to repay nearly 1100 of its customers who lost around $101 million in the collapse of the defective First Guardian retirement investment scheme.

Sumber : AFR