ASX jumps as China’s economy beats market expectationsCameron MicallefNewsWireMon, 20 October 2025 3:20PM
Australia’s sharemarket bounced in afternoon trading after better-than-expected results from the Chinese economy lifted investor sentiment.
The benchmark ASX 200 index closed up 36.6 points, or 0.41 per cent, to settle at 9031.9 points after hitting an intraday high of 9034.4, while the broader All Ordinaries added 31.4 points, or 0.34 per cent, to 9,324.6.
Australia’s dollar added 0.1 per cent and is now buying US65.07c.
Nine of 11 industry sectors finished in the green, led by the major banks with the financial sector advancing 1.35 per cent.
Commonwealth Bank jumped 2.6 per cent to $172.70 a share, NAB added 1.04 per cent to $43.75, Westpac closed 1.39 per cent higher at $39.27 and ANZ finished 0.44 per cent higher to $36.77.
Technology stocks also gained with Life360 adding 1.23 per cent to $46.10, Codan gaining 1.45 per cent to $33.56 and Catapult Sport jumping 3.10 per cent to $6.99.
But the materials sector slumped, even as China announced-stronger than-expected results.
BHP dropped 1.06 per cent to $43.14, Fortescue slipped 0.10 per cent to $20.16 and Rio Tinto booked a small loss of 0.13 per cent to $130.71.
While the major iron ore producers fell, investors cashed in on their gold stocks, with Northern Star Resources slumping 3.57 per cent to $25.12 and Evolution Mining losing 4.88 per cent to trade at $11.10.
IG market analyst Tony Sycamore said the major resource companies slipped despite a strong result out of China.
“The consensus was a GDP print of 4.7 per cent but we got 4.8 per cent and that has played out rather well besides the materials sector,” he said.
“But the materials sector has been on a fantastic run so it makes sense to have some profit taking, especially if Chinese GDP continues to trade at below five per cent.”
Mr Sycamore said the materials sector had rallied 30 per cent since its lows in June.
“Even with a stronger result than expected on Chinese GDP, a lot of good news has been priced into the market with material stocks.
“Investors are probably thinking where do we go from here? China’s growth is likely to be lower than 5 per cent in quarter four and the Chinese government has shown no interest in widespread, sort of bazooka-style stimulus packages,” he said.
In company news, shares in ZIP soared 4.30 to $4.61 after the buy now pay later provider upgraded its expectations for US total transaction volume growth to above 40 per cent for the year.
Shares in oil and gas producer Beach Energy leapt 4.13 to $1.14 after it informed the market it had lifted its quarterly production as well increased revenues on strong sales and higher prices.
DroneShield shares fell 2.61 per cent to $4.47 in the afternoon with the business announcing quarterly revenues soaring to $92.9m.
Uranium producer Deep Yellow was hammered, falling 18.75 per cent to $1.88 after announcing the immediate exit of chief executive John Borshoff.
Bapcor shares were also heavily in the red, slumping 17.67 per cent to $2.61 after the auto parts retailer released its FY26 guidance.
Originally published as ASX jumps as China’s economy beats market expectations
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