The ASX Roars Back to Life: Miners Lead the Charge, But Tech Takes a Beating
Updated February 4, 2026 – 4:22 PM, originally published at 4:30 AM
Key Updates
4:20 PM (9 mins ago): The Australian stock market staged a dramatic comeback on Wednesday, fueled by a resurgence in mining and banking stocks. Yancoal stole the show, skyrocketing 9% (https://www.afr.com/markets/equity-markets/asx-to-fall-atlassian-drops-8pc-in-broad-software-sell-off-20260204-p5nzc0?post=p59w6s). But here's where it gets controversial: is this a sustainable rally, or just a temporary blip in a volatile market?
4:01 PM (28 mins ago): A Queensland miner specializing in critical minerals secured a major supply deal with Japan, highlighting the growing global demand for these essential resources (https://www.afr.com/markets/equity-markets/asx-to-fall-atlassian-drops-8pc-in-broad-software-sell-off-20260204-p5nzc0?post=p59w6h). This raises questions about Australia's role in the global supply chain and the potential environmental impact of increased mining activity.
3:46 PM (43 mins ago): Carlyle’s Revera secured a whopping $150 million in funding to expand its battery operations in Australia, signaling a continued push towards renewable energy solutions (https://www.afr.com/markets/equity-markets/asx-to-fall-atlassian-drops-8pc-in-broad-software-sell-off-20260204-p5nzc0?post=p59w6q). And this is the part most people miss: how will this impact the traditional energy sector and the jobs associated with it?
3:20 PM (1 hr ago): UBS suggests Xero could see a re-rating thanks to Melio's profitability, offering a glimmer of hope in an otherwise bleak day for tech stocks (https://www.afr.com/markets/equity-markets/asx-to-fall-atlassian-drops-8pc-in-broad-software-sell-off-20260204-p5nzc0?post=p59w6f).
3:02 PM (1 hr ago): Betashares predicts Trump’s Project Vault will give ASX miners a boost, but will this policy actually deliver on its promises? (https://www.afr.com/markets/equity-markets/asx-to-fall-atlassian-drops-8pc-in-broad-software-sell-off-20260204-p5nzc0?post=p59w6i)
2:45 PM (1 hr ago): Qoria's trading price is significantly below the terms of its Aura deal, raising concerns about the company's valuation (https://www.afr.com/markets/equity-markets/asx-to-fall-atlassian-drops-8pc-in-broad-software-sell-off-20260204-p5nzc0?post=p59w6e).
Market Roundup: A Tale of Two Sectors
The S&P/ASX 200 index climbed 70.70 points (0.8%) to reach 8,927.80 by 2:05 PM AEDT, driven primarily by a strong performance in the materials and energy sectors. Gold prices surged 2.7% to $5,080 per ounce, building on a 6% gain from the previous session, while copper rebounded over 4% to $13,478 on the London Metal Exchange. This commodity rally propelled gold miners like Northern Star (up 6.2%), Regis Resources (up 5.8%), and Newmont (up 4.3%) to impressive gains. BHP, reclaiming its position as the ASX 200's most valuable company, saw its shares rise 4.5% to $52.40, briefly touching a 52-week high of $52.27. Rio Tinto also enjoyed a 4.3% increase to $159.43.
Rob Taubman, UBS Executive Director of Equities, emphasized the underlying strength of physical commodities: "Despite recent market volatility, iron ore and copper demand from China remains stable, supply-demand dynamics are favorable, and cash flows for major miners like BHP and Rio are robust, attracting investors back to the sector."
Coal miners, led by Yancoal's 9% surge to $6.30, also experienced a significant boost. This follows data revealing a record 161 new and revived coal-fired power projects in China in 2025, with strong growth expected this year. Yancoal's major shareholder, Yankuang Energy Group, saw a 10% rise in Shanghai.
Rising oil prices, nearing $68 per barrel, benefited energy companies like Woodside Energy (up 3.1% to $25.84) and Santos (up 3.4% to $7.04), following the US downing of an Iranian drone near an American aircraft carrier.
Banks Rebound, Tech Takes a Hit
After a period of heavy selling, major banks rebounded, led by Commonwealth Bank's 2.6% gain to $157.06, National Australia Bank's 2.1% rise to $43.93, and Westpac and ANZ climbing 1.5% and 0.8% respectively. This shift reflects investors' preference for stability in the face of rising interest rates, potentially viewing banks as a safe haven.
In stark contrast, the technology sector suffered a 9.4% slump, mirroring a sell-off in US software stocks due to concerns about the impact of artificial intelligence on demand for traditional software products. Xero plummeted 15.9% to $80.82, nearing a three-year low, while WiseTech Global shed 10.7% to $51.25.
Corporate Spotlight
Amcor: Shares rose 3.5% to $65.31 after reaffirming its full-year guidance and announcing $55 million in synergies from its $13 billion acquisition of Berry, exceeding expectations.
Synlait Milk: Shares plunged 13.5% to 45 cents following news of a projected first-half net loss of up to NZ$82 million, attributed to manufacturing issues and margin pressure from raw milk sales.
Origin Energy: Shares fell 3.6% to $11.12 amidst the announcement of Andrew Thornton's appointment as Executive General Manager of Energy Supply & Operations, effective July 1st.
Food for Thought:
The ASX's performance today highlights the ongoing tug-of-war between traditional industries like mining and banking, and the tech sector's vulnerability to market sentiment. As the global economy navigates geopolitical tensions and technological advancements, which sectors will emerge as the long-term winners? What role will Australia play in this evolving landscape? Share your thoughts in the comments below!
