Australian stock markets commenced the day with upward momentum, mirroring the positive trend seen on Wall Street. This surge was primarily attributed to Microsoft’s strong performance, which ignited a significant rally in the largest technology companies in the United States.
Furthermore, energy-related stocks also saw gains, driven by the continued rise in crude oil prices. There is increasing speculation that the OPEC+ alliance is considering taking action to support and elevate market prices. West Texas Intermediate, a key benchmark for crude oil, climbed by 2.3 percent, closing above the $77 per barrel mark.
The S&P/ASX 200 is 0.21 per cent higher at 7,073.10.
The SPI futures are pointing to a rise of 16 points.
Best and worst performers
The best-performing sector is Materials, up 1.23 per cent. The worst-performing sector is Utilities, down 1.02 per cent.
The best-performing large cap is Pilbara Minerals (ASX:PLS), trading 3.37 per cent higher at $3.68. It is followed by shares in Meridian Energy (ASX:MEZ) and Allkem (ASX:AKE).
The worst-performing large cap is Technology One (ASX:TNE), trading 2.25 per cent lower at $16.04. It is followed by shares in CAR Group (ASX:CAR) and Incitec Pivot (ASX:IPL).
Asia-Pacific markets largely rose on Tuesday, mirroring similar moves on Wall Street after a tech-fueled rally.
Microsoft shares gained 2%, reaching a new 52-week high, after CEO Satya Nadella said former OpenAI chief Sam Altman will join the tech giant to lead a new AI research team.
Chipmaker Nvidia also added 2.3%, closing at an all-time high for the stock ahead of its earnings report Tuesday.
Investors in Asia will also assess South Korean producer prices for October, as well as New Zealand’s October trade figures.
In Australia, the S&P/ASX 200 extended gains from Monday, climbing 0.26%.
Japan’s Nikkei 225 was slightly lower at 0.13%, while the Topix opened 0.21% down.
South Korea’s Kospi rose 0.76%, while the small-cap Kosdaq inched 0.30% higher.
Futures for Hong Kong’s Hang Seng index stood at 17,943, pointing to a stronger open compared with the HSI’s close of 17,778.07.
Commodities and the dollar
Gold is trading at US$1982.80 an ounce.
Iron ore is 1.7 per cent higher at US$131.90 a tonne.
Iron ore futures are pointing to a 2.31 per cent rise.
One Australian dollar is buying 65.62 US cents.