Easing of trade war lifts market

THE Australian share market yesterday rose for a second day as US-China trade tensions eased and Chinese trade data beat expectations.

The benchmark ASX 200 index closed 48.6 points, or 0.7 per cent, higher at 6568, while the broader All Ordinaries was up 53.8 points, or 0.8 per cent, at 6642.3.

The ASX followed a similar pattern to moves in the US, losing ground in the morning before rebounding and closing the day on a high.

“There’s been some easing in the trade tension between the US and China and that’s helping those riskier assets do a little bit better,” CommSec market analyst James Tao said.

China set the daily fixing rate for the yuan stronger than analysts had expected, easing fears the country would significantly de value its currency, while Chinese trade data for July showed exports rose unexpectedly

It was a mixed day for companies reporting earnings, with Mirvac up 6.6 per cent to $3.40 and Nick Scali 5.5 per cent to $6.48. IAG fell 4.9 per cent to $7.68 as did AGL, 4.6 per cent to $19.08, after they disappointed investors.

The telecommunications sector was the biggest gainer, after Telstra gained 2.3 per cent to hit a two-year high of $3.99.

In the mining sector BHP gained 1.5 per cent to $37.30 and Fortescue Metals 4.1 per cent to $7.34, while Rio Tinto fell 1.1 per cent to $88.52.

Gold miners posted strong gains as the price of the precious metal broke $US1500 an ounce for the first time in six years, and hit a record high here for $2215.

Newcrest Mining closed up 4.1 per cent to $38.87, Evolution 1.9 per cent to $5.48 and Northern Star 2 per cent to $13.60.