Australian tech stocks get lift from overnight AI-fueled rally in US
XLK•Australian technology stocks rose 2.7%, their best day since October 16, as an overnight U.S. tech rally lifted sentiment. NEXTDC jumped more than 10% after reporting compliance with both financial covenants.
1. Tech shares advance
Australian technology stocks rose 2.7% and were set for their best day since October 16. Megaport gained 6%, Technology One rose 1.4% and WiseTech Global added 1.2%.
2. NEXTDC covenant update
NEXTDC shares jumped more than 10% after the data center operator submitted its covenant compliance report to senior debt financiers for June 30, saying it complied with both financial covenants. Citi said the update should help reduce investor concerns about the balance sheet.
3. US rally lifts sentiment
The Nasdaq rose overnight as Anthropic's initial public offering filing and AI-related funding announcements from Meta, SpaceX and Broadcom boosted sentiment. The Australian technology sub-index is down more than 23% year to date.
