ASX 200 Rises Amidst Wall Street Gains and Promising Chinese Policies

The Australian Securities Exchange (ASX) 200 saw a positive trading session, recording a 0.42% increase to reach 8222 points by 2:00 pm AEST. This rise defies the recent trend of early gains fizzling out and is buoyed by strong performances on Wall Street, where indices attained new record closing highs.

Investor sentiment was bolstered by recent developments in China. The Chinese Finance Ministry announced plans for a briefing on upcoming fiscal policies targeted at strengthening the counter-cyclical adjustment. This announcement has sparked anticipation among investors for potential adjustments in fiscal policy, although significant changes require approval from the National People's Congress Standing Committee, which is expected to meet later this month.

Adding to the positive market momentum, China introduced a new 500 billion yuan swap facility, allowing eligible brokers and insurers to exchange financial instruments such as bonds and stocks for liquid assets. This measure aims to ease liquidity in the financial markets.

The ASX 200‘s positive trajectory was mirrored in the mining sector, which saw gains as optimism towards China’s market conditions returned. Energy stocks benefited from stabilized oil prices, influenced by geopolitical tensions in the Middle East, trading between $71.50 and $78.00 per barrel.

Financial stocks also rose following a notable 6.2% increase in the Westpac Consumer Confidence Index for October, which reached 89.80, further enhancing market sentiment. Meanwhile, the property sector experienced a rebound after a recent dip.

As of today, the ASX 200 reached a high of 8242.80, nearing the previous high set on September 20. Should the index fall below 8250.00, analysts caution that it could indicate the formation of a head-and-shoulders topping pattern, potentially leading to a decline towards the 7920.00/7900.00 mark.

The day’s trading also featured significant moves among major companies. Fortescue saw a 4% rise to $19.73, while Rio Tinto and BHP both experienced gains, boosted by climbing iron ore prices in Singapore. The market also reacted to the news of Norway’s sovereign wealth fund removing BHP from its climate watch list.

In the corporate landscape, Arcadium Lithium emerged as the top gainer on the ASX, surging nearly 40% after Rio Tinto proposed a $9.9 billion offer to acquire the company. This news invigorated the lithium sector, leading to gains for companies such as Lake Resources and Sayona Mining.

The energy sector reflected a rebound in oil prices, influenced by potential disruptions from Hurricane Milton and tensions in the Middle East. Companies like Woodside, Beach Energy, and Santos posted gains.

In other corporate developments, ARB Corporation experienced a gain following progress in its acquisition of the US company 4 Wheel Parts, and Netwealth reported a near 4% increase due to a surge in funds under administration.

Mexican food chain Guzman y Gomez saw a marginal rise despite reporting slower sales in the US, as the company maintained its fiscal 2025 guidance.