ASX NEWS LIVE | ASX Rises as Local Market Shrugs Off Wall St Weakness

Commonwealth Bank of Australia [ASX:CBA] said in a note today that it anticipates that Beijing is on the verge of introducing additional stimulus measures, possibly as early as this week.

The prior stimulus package was one of the primary drivers behind the recent uptick in commodity prices and stocks linked to China’s economy.

CBA notes that China’s recent announcement of its most substantial support package since the COVID-19 pandemic has sent a clear signal to markets about the government’s commitment to achieving its 5% growth target for the year.

However, financial experts caution that central bank initiatives alone may not suffice to revitalise China’s struggling property sector and meet its GDP goals.

While some analysts speculate that major fiscal policies might be delayed until after the November US presidential election, CBA suggests that Beijing could unveil a series of new economic policies this coming week.

The ASX 200 is up by +0.68%, trading at 8,182.0 around midday as all sectors gain today despite the weak lead from US and European stocks overnight.

On the Aussie benchmark, consumer discretionary is the top performer, climbing +1.76% as market cap big hitters Wesfarmers gained +1.5% and JB Hi-Fi rose +3%.

Commuincation services are also seeing strong gains today, with the sector up +1.64% as REA Group gained +3.4% and TPG Telco is up by +4.3%.

Major miners are trading around flat after recovering from earlier losses this morning as the price of iron ore futures climbed again overnight.

Iron ore futures on the Singapore exchange are now around US$96.45 per tonne after nearly touching US$100 overnight as Chinese stimulus has served as a shot in the arm for the sector.

Another major shakeup is underway at the OpenAI, the makers of the controversial and lauded Chat GPT AI.

Mira Murati, OpenAI’s chief technology officer, is one of several senior employees that are leaving the company.

Mr Altman commented last night, saying:

‘Leadership changes are a natural part of companies, especially companies that grow so quickly and are so demanding,’ Altman added. ‘I obviously won’t pretend it’s natural for this one to be so abrupt, but we are not a normal company’

Ms Murati was the temporary CEO during the prior leadership scuffle, during which the board attempted to oust CEO Sam Altman.

Now, only 2 of the 11 OpenAI founders remain at the company as it embarks on its next phase as a for-profit company.

What those impacts are in the long term remains to be seen.

Platinum Asset Management [ASX:PTM] has turned down Regal Partners’ takeover proposal, deeming the share-based offer insufficient.

However, the $12 billion global equities manager said it ‘remains receptive’ to enhanced bids from Regal or other potential buyers.

In a note today, Platinum informed shareholders that ‘the current terms of the Regal proposal undervalue Platinum.’

The company, established by renowned investor Kerr Neilson—who maintains a 22.5% stake as its largest shareholder—is seeking a more attractive deal.

Regal’s offer consisted of 0.274 of its shares for each Platinum share, along with a 20¢ special dividend to be paid from Platinum’s reserves.

Based on Regal’s share price of $3.30, this values Platinum at $1.10 per share.

Platinum’s stock closed at $1.12 on Wednesday, having already distributed a 4¢ final dividend, which was factored into Regal’s initial approach.

Shares in Platinum are down by -0.7% in trading so far today at $1.118 per share.

Good morning. Charlie here,

The ASX 200 opened up +0.58% to 8,173.5 this morning, a broad gain across most sectors that is somewhat surprising considering Wall Street’s weak lead overnight.

The Dow Jones and Russell 2000 sold off sharply overnight in the US, as the Fed cut momentum appears to have run out of gas.

Chinese stocks also appear to be slowing after their recent gains after a series of policy changes and stimulus from Beijing to support the ailing economy.

Most pundits derided the stimulus package and policy changes as ‘not enough‘. This could be a contrarian signal that the bottom is here.

Apart from that, things are fairly quiet in the markets. Many are awaiting September economic data, which begins next week, and then Q3 earnings to begin in the US.

Oil prices fell again amidst demand concerns and rising supply as Libya’s factions came to an agreement on the process of picking the central bank governor.

A resolution here will mean the factions who have shut down many of the oil fields should relent, potentially restoring significant oil supply.

On the ASX today, We’ll be watching moves higher from Brickworks, plus Platinum Asset Management rejecting rival fund Regal Funds takeover bid.