Australian shares experienced a surge on May 13, 2025, driven by a trade truce between the U.S. and China. The S&P/ASX200 index increased by 0.43% to 8269 points. The All Ordinaries index also saw a rise, climbing 0.76% to 8532.2. This positive market movement reflects increased investor confidence that trade tensions are easing.
The U.S. and China have agreed to reduce tariffs, with the U.S. cutting tariffs on imports from China to 30% from 145%, and China lowering duties on U.S. goods to 10% from 125%. This agreement aims to de-escalate trade tensions and foster a more stable economic environment.
IT stocks spearheaded the rally, jumping over 3.35%, mirroring the Nasdaq's performance. Energy stocks also rose by 3% as oil prices increased. Financials showed mixed results, while materials saw gains, boosted by improved demand outlook from China. The Australian dollar weakened slightly against the U.S. dollar, trading at 0.6409.