FX.co ★ ASX Hits 5-Week High, Posts Best Week in 5 Months

The S&P/ASX 200 index increased by 0.5%, closing at 8,987 on Friday. This rise followed a 1.1% gain in the previous session, pushing the index to its highest point in five weeks, primarily driven by strong performance in the tech sector. Overall, the index advanced by 2.3% over the course of the week, representing its most significant weekly gain since the end of April. The positive momentum was largely fueled by strong cues from Wall Street, where enthusiasm for developments in artificial intelligence outweighed apprehensions about a potential U.S. government shutdown, leading U.S. markets to reach new heights. In Australia, recent figures indicated that the services sector expanded for the 20th consecutive month in September, albeit at the slowest rate since June. In terms of market specifics, tech stocks were at the forefront of this upward movement, increasing by 1.6% to reach a two-week high, experiencing their most substantial intraday gain since September 19, and achieving their third consecutive day of gains. Key contributors to this trend included companies like Xero, which rose by 1.7%, and TechnologyOne, which grew by 2.2%, mirroring similar trends in U.S. tech stocks. Additional significant stock movements were noted in CSL (up 0.8%), Macquarie (up 1.8%), Goodman (up 0.9%), and Lynas Rare Earths (up 2.8%).