NAB, major miners help drive the ASX 200 higher

The Australian sharemarket bounced after a two-day losing streak on the back of a strong result from NAB and the beginning of trade talks between the US and China.

The benchmark ASX 200 index gained 26.90 points or 0.33 per cent to finish Wednesday’s trading at 8,178.30 points.

The broader All Ordinaries also closed higher, up 30.50 points or 0.36 per cent to 8,399.80.

The Australian dollar slipped to US 64.77 cents.

On an overall positive day for the market, nine of the 11 sectors closed Wednesday’s trading in the green.

This was led by energy stocks, consumer discretionary and financials, with the major banks helping to drive the index higher overall.

National Australia Bank came out with its first-half results showing cash profits rose to $3.58bn for the six months until March 31, beating expectations of cash earnings of $3.47bn.

Despite the financial sector as a whole rising, it was mixed news for the major banks.

NAB shares climbed 1.61 per cent higher to $35.87, ANZ, which will announce its half yearly results on Thursday is up 0.47 per cent to $29.98.

Westpac shares fell 0.063 per cent to $31.79, after its results were released on Monday and CBA fell 0.47 per cent to $165.96, after dropping during the final hour of trading.

Moomoo’s market strategist Jessica Amir said NAB’s earning results today, which were better than expected, shows the health of the sector.

“We are eyeballing banks profitability returning to near record highs and it really underscores the health of the average mortgage holder.

“It also shows the Australian economy is pretty protected and faring better than most.”

US treasury secretary Scott Bessent announced he was meeting senior Chinese officials in Switzerland on Thursday, which also helped drive sentiment on the local market.

The news, along with China’s central bank reducing the reserves its banks must hold by half a percentage point, to add $1 trillion yuan ($213bn) into the economy, helped drive Australia’s resource companies.

BHP jumped 0.88 per cent to $37.93, while Rio Tinto rose 0.58 per cent to $115.93 and finished Wednesday’s trading up 0.63 per cent to $16.09.

Santos rose 2.04 per cent to $6.00 a share while Woodside also is trading heavily in the green up 1.65 per cent to $20.27.

“Iron ore prices have risen for the fourth consecutive day, but bets are basically on for it over $US100 maybe before the week is out,” Ms Amir said.

“There’s a lot of optimism around China now, but of course we need to see if they hold up their end of the bargain.”

“For now it’ll probably be the rotation out of the defensive safe haven sectors, back to risk on which we saw with the energy and materials sector today.”

In corporate news, buy now pay later provider Zip was the strongest performing share on the ASX, soaring 13.03 per cent to $1.825 after a trading update showed improving earnings.

The business says it will achieve tidal transaction growth in both Australia and the United States and has reaffirmed its financial year 2025 guidance of cash EBTDA of at least $153m.