Australian shares rose as banks and miners led the charge. BHP’s higher Q2 output boosted the mining sector. Investors favored safe-haven stocks amid global uncertainties.
Australian shares climbed on January 21, 2025, with banks and miners driving the gains, while BHP Group, the world’s largest listed miner, benefitted from a higher second-quarter output.
The S&P/ASX 200 index rose 0.7%, closing at 8,402.2, marking its highest close since December 9, 2024. Banking stocks were a significant contributor, with the financial sector gaining 1.3%. The ‘big four’ banks – Commonwealth Bank of Australia, Westpac, National Australia Bank, and ANZ – saw their shares rise by 0.7% to 1.9%. These gains were partly fueled by a growing preference for safe-haven assets as investors reacted to global uncertainties, including policy shifts anticipated from U.S. President Donald Trump’s return to office.
The mining sector also played a pivotal role in the market’s positive momentum. The mining index rose 1%, reaching its highest point since December 12, 2024. This rally was largely driven by BHP Group’s strong performance. BHP, known for its iron ore and copper production, reported an uptick in iron ore output for the December quarter and a notable 17% increase in copper production. As a result, BHP’s shares rose by 0.7%, having earlier surged as much as 1.8%. These gains were further bolstered by rising iron ore prices amid improving market sentiment in China.
Gold stocks were also in the green, advancing by 1.9%, spurred by higher bullion prices. Discretionary stocks also saw a rise, with a 0.9% increase in the sector. Retail giant Wesfarmers contributed to this with a 1.3% gain, announcing that it would cease operating its loss-making online retailer Catch as a standalone entity in fiscal year 2025.
Meanwhile, New Zealand’s benchmark S&P/NZX 50 index closed slightly lower, falling 0.3% to 13,052.9 points.
About BHP Group:
BHP Group, an Australian multinational, is the world’s largest producer of iron ore and copper. It plays a crucial role in the global mining industry, with a significant presence in iron ore, copper, coal, and petroleum. The company’s recent increase in production is seen as a positive indicator for the mining sector’s outlook in the coming quarters.
