TORONTO: Australian shares closed higher on Friday, snapping a three-day losing streak, as heavyweight miners powered gains a day after the market confirmed a correction, with investors still cautious amid escalating global trade tensions.
The S&P/ASX 200 index, which has clocked only five positive sessions in the last 20 trading days, rose 0.5% to 7,789.7 points. The index dropped 10.1% on Thursday from its February 14 record peak, officially confirming a correction.
The benchmark has lost 2.5% so far this week, set for its fourth consecutive weekly loss.
Markets faced fresh turbulence after US President Donald Trump threatened 200% tariffs on European alcoholic beverages, capping a week of geopolitical tensions that saw Australia fail to secure exemption from steel and aluminum levies.
Jessica Amir, market strategist at Moomoo Australia, suggested markets could recover similar to 2018-2019 during the last US-China trade war, anticipating some profit-taking in the session on Friday.
“Investors who bought into the ASX200 after the index fell 15% from its 2018 peak were rewarded as the market recovered within three months to hit a record high,” Amir said.
Comments