​EBC Markets Briefing | ASX takes hammering; Pinterest defied global rout

The ASX 200 tumbled over 2% in early Asian hours on Wednesday amid the global rout, though Trump said the US Navy would escort ships through the Strait of Hormuz, if necessary.

Australia's economy grew at the fastest annual pace in almost 3 years in Q4, a pickup that reignited inflation and required a hike in interest rates to tamp demand down.

That marked the 17th consecutive quarter of growth. But the household savings ratio climbed to 6.9%, from 6.1%, suggesting consumers still had plenty of spending power left.

The RBA said the growth of more than 2% must entail inflationary pressures. Policymakers raised interest rates last month by 25 bps to 3.85% as prices reaccelerated after three cuts last year.

The country's LNG exporters are set to benefit from a surge in prices. That, coupled with promising prospect of bank stocks, will build a strong groundwork for potential rally.

Overlooked local technology stocks may offer signs of resilience amid the unease over AI disruption. Analysts argue the sector's fundamentals remain intact despite premium valuations.

The ASX 200 had a reprieve around 50 SMA which looks like a solid support. If the level is breached, a sharp decline towards the low of 8,676 last seen in 6 February is likely.

Asset recap

As of market close on 3 March, among EBC major products, Pinterest shares led gains after activist investor Elliott Investment Management made a $1 billion investment in the company.

Micron announced that it had started shipping customer sampled for its latest LPDRAM module for AI data centres. The stock also received a price-target increase from a high-profile investment firm.

South Korean stocks saw their worst day since August 2024, and extending a steep selloff from the previous session though orders from Europe powered massive gains in the defence sector.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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