ASX Rises as Resource Rally and Energy Surge Offset Tech Weakness

Key Highlights:

• ASX 200 closes up 0.33% at 8,178.3, led by energy and materials.
• Nine of eleven sectors advance; tech and healthcare lag.
• Uranium, gold, and mid-cap resource stocks shine as China stimulus lifts sentiment.
• Volatility index signals stable near-term outlook.

Australian shares edged higher on Wednesday, with the S&P/ASX 200 gaining 0.33% to finish at 8,178.3, supported by robust performances in energy (+2.12%), real estate, and consumer discretionary stocks. Investor sentiment found fresh momentum as China fired its latest stimulus salvo, sparking optimism for demand recovery in global commodities and resource equities.

The All Ordinaries index rose 0.36%, while the Small Ordinaries led gains with a 1.69% jump, pointing to growing risk appetite among investors. Sector breadth remained solid, with nine out of eleven sectors closing in the green, although technology (-0.20%) and healthcare (-1.47%) were notable laggards amid profit-taking and valuation concerns.

Energy stocks outperformed on the back of a uranium price rally. Boss Energy (ASX: BOE) surged 12.43%, and Deep Yellow (ASX: DYL) jumped 7.6%, reflecting renewed investor confidence in nuclear-linked plays. Kelsian Group soared 18.28%, while ZIP Co Ltd gained 13%, helping power the discretionary space. Meanwhile, Firefly Metals (+10%) and Gorilla Gold Mines (+13.13%) were among the day’s standout small-cap gainers, highlighting a strong tailwind for speculative mining bets.

On the flip side, NUIX Ltd (ASX: NXL) plunged 16.03% on investor disappointment, and Immutep (ASX: IMM) fell 8.82%, reflecting weakness in biotech. Lynas Rare Earths and Platinum Asset Management also weighed on the index with sharp losses.

Commodities played a key role in shaping sentiment. Gold prices spiked 3.09% to AUD 3,343.50/oz, lifting gold miners broadly, while copper and silver also posted modest gains. Oil slipped slightly, though the broader energy sector remained well bid.

Globally, Asian markets closed stronger, with Nikkei up 1.04% and Hang Seng gaining 1.74%, while U.S. indices slipped amid persistent rate cut uncertainty and earnings volatility. Despite offshore wobbles, the ASX Volatility Index (^XVI) held at 12.1, signaling continued low market turbulence over the next 30 days.

With the macro backdrop stabilizing and China stimulus offering a near-term tailwind, the ASX looks poised to extend gains, albeit with sectoral rotation likely as earnings season and macro data unfold.