Australia shares rise on Trump tariff move, higher iron ore prices
Aug 14 (Reuters) - Australian shares climbed to a one-week high on Wednesday, first due to President Donald Trump’s delay of tariffs on some Chinese imports and then firmer iron ore prices that lifted mining stocks even further.
The U.S. announcement overshadowed unexpectedly weak July data from China that pointed to a further loss of economic momentum.
The S&P/ASX 200 index closed 0.4% higher, rising 27.4 points to 6,595.9. On Tuesday, the benchmark fell 0.3%, snapping a four-day winning streak.
Biotech giant CSL Ltd provided some of Wednesday’s gains, after the index heavyweight reported a record profit that raised its shares 6.6% to an all-time high of A$234.0.
Some analysts hope Trump’s selective three-month delay of tariffs will dial down U.S.-China friction, but most investors don’t believe tensions will subside for long. A Morgan Stanley note on the decision said “extra time & talks are modest positives but don’t change the structural incentives for tensions.”
Shares of iron ore miners, who have recently come under pressure from softer prices for the steelmaking material, jumped on Wednesday as futures edged higher.
The biggest gainer was Fortescue Metals Group, which closed 4.7% higher. Mining giants BHP Group and Rio Tinto also climbed.
