July 15 (Reuters) – Australian shares rose on Tuesday, driven by financial stocks, while glimmers of optimism returned to markets after U.S. President Donald Trump signalled a readiness to negotiate tariffs with the European Union, easing fears of a trade war.
The S&P/ASX 200 index rose 0.5% to 8,615.1 points, as of 0039 GMT. The benchmark ended 0.1% lower on Monday.
Trump escalated trade tensions over the weekend, threatening a 30% tariff on most EU and Mexican imports from August 1, setting a tight deadline for potential trade deals.
The EU accused the U.S. of stalling and warned of retaliation, following which Trump signalled openness to talks, with EU officials set to visit Washington for trade negotiations, providing a positive push to markets worldwide.
On the local bourse, heavyweight financial stocks gained 0.8%, with the country’s “big four” banks up between 0.6% and 0.9%.
Technology stocks jumped about 1.5%, tracking overnight gains in Wall Street peers.
On the other hand, mining stocks declined 0.7%, as iron ore prices were subdued after hitting multi-month highs in the previous few sessions.
BHP, the world’s largest listed miner, dipped 0.7%, while Rio Tinto and Fortescue fell 1% and 0.8%, respectively.
Meanwhile, miners also evaluated Australian Prime Minister Anthony Albanese’s call for closer Australia–China cooperation on green steel during his six-day visit to China.
Australia risks losing up to half its iron ore revenue if it doesn’t pivot to producing green iron, a low-emissions alternative, as global steelmakers shift to renewable energy, a think tank warned last year.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.2% to 12,709.97 points.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Rashmi Aich)
