Which ASX sectors and commodities show resilience as trade tensions reshape regional markets?

_{This article was developed in collaboration between IG's editorial team and AI technology}

Australian shares edge higher

Australian shares inched higher on Tuesday with Liontown Resources leading gains while Bellevue Gold plunged, as investors digest mixed signals from global markets and commodity movements.

The Australia 200 edged up 0.02% to 7,749 points on Tuesday, struggling for direction at the open before posting modest gains following positive performances on Wall Street overnight. The Australian dollar rose 0.1% to 63.30 US cents.

Lithium and energy stocks lead gains as gold miners falter

The market showed significant divergence across sectors, with lithium and energy stocks outperforming while gold miners faced strong headwinds.

The biggest percentage gainers this morning included:

• Liontown Resources (+4.8%)
• DigiCo Infrastructure REIT (+3.6%)
• Viva Energy (+3.3%)
• Iluka Resources (+3.2%)
• Computershare (+2.5%)

Meanwhile, the worst percentage falls were recorded by:

• Bellevue Gold (-20.5%)
• Regis Resources (-2.2%)
• Treasury Wine Estates (-2%)
• Insignia Financial (-1.9%)
• Megaport (-1.9%)

Liontown Resources' 4.8% surge comes as the lithium developer continues to attract investor interest despite volatile lithium markets. The company's Kathleen Valley project remains on track, with investors appearing to bet on a long-term recovery in lithium demand driven by electric vehicle growth and energy storage requirements.

In stark contrast, Bellevue Gold's dramatic 20.5% plunge followed disappointing production results from its namesake gold mine in Western Australia. The significant underperformance raises questions about the company's ability to meet its production guidance for the remainder of the year.

Commodity movements shaping sector performance

In commodities markets, mixed price movements are creating both opportunities and challenges for Australian resource companies:

• Spot gold rose 0.2% to $3,214 per ounce
  • This modest gain hasn't supported gold producers like Bellevue Gold (-20.5%) and Regis Resources (-2.2%)
  • The sector appears to be responding more to company-specific factors than underlying gold price movements
• Brent crude oil gained 0.5% to $65.18 per barrel
  • Providing support for energy companies like Viva Energy
  • Potentially benefiting other Australian energy producers such as Santos (ASX: STO) and Karoon (ASX: KAR)
  • Oil prices showing resilience despite OPEC's downward revision of global demand forecasts
• Iron ore slipped 0.3% to $99.25 per tonne
  • Hovering just below the psychologically important $100 level
  • This decline could pressure major Australian iron ore producers in coming sessions
  • Impact was limited in today's trading

Global market context

Australian shares are taking cues from positive overnight performances in global markets, with the US 500 gaining 0.8% to 5,405 points and the US Tech 100 rising 0.6% to 16,831 points.

European indices posted even stronger gains, with the EuroStoxx up 2.7% to 449 points and the FTSE 100 rising 2.1% to 8,134 points.

The global market rally comes despite President Donald Trump confirming that semiconductor tariffs will "take place in the very near future," though investors have been encouraged by exemptions for smartphones and other electronics from his sweeping tariff plans.

In cryptocurrency markets, Bitcoin dipped 0.5% to $84,488.

China-Vietnam agreements relevant to Australian exporters

Chinese President Xi Jinping's visit to Vietnam has resulted in 45 cooperation agreements between the two countries, including deals on enhancing supply chains and railway cooperation. This development has mixed implications for Australian resource exporters.

On one hand, stronger economic ties between China and Vietnam could boost regional growth and increase demand for Australian resources. On the other, these agreements may accelerate supply chain shifts that bypass Australian producers in favor of more integrated regional networks.

Xi's comments opposing "unilateral bullying" in trade reflect China's strategy to strengthen regional economic ties as a buffer against US tariffs. For Australian exporters, this evolving trade landscape presents both challenges and opportunities as regional supply chains adapt.

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Strategic insights for Australian investors

Based on today's market movements and broader trends, Australian investors may want to consider the following strategies:

• Energy sector: with oil prices showing resilience despite global trade tensions, quality energy stocks like Viva Energy offer potential upside, particularly those trading below intrinsic value

• Selective approach to gold: recent gold stock performance variations suggest investors may wish to consider examining company-specific factors rather than relying solely on gold price movements when analyzing the sector

• Lithium recovery plays: Liontown's strong performance signals potential investor appetite for quality lithium developers with advanced projects, despite ongoing price volatility in the underlying commodity

• Caution on tech stocks: with global semiconductor tariffs looming and the domestic tech sector showing weakness (Megaport down 1.9%), selective positioning and reduced exposure may be prudent

• Defensive positioning: Treasury Wine Estates' decline (-2%) alongside Insignia Financial (-1.9%) suggests even traditionally defensive sectors face challenges in the current environment, highlighting the value of quality over sector allocation

• _{This article is intended for general informational purposes only and does not constitute financial advice. The content provides analysis of current market conditions and potential strategies that investors might consider, but these should not be taken as recommendations to buy, sell, or hold any specific investment. Market conditions are inherently unpredictable, and all investments carry risk. Past performance is not indicative of future results. Any investment decisions should be made in consultation with a qualified financial advisor who understands your personal circumstances, financial goals, and risk tolerance. The authors and publishers of this content accept no liability for any losses or damages arising from investment decisions made based on the information contained herein.}