S&P/ASX 200 (INDEXASX:XJO) closed down 44 points or 0.7% to 6,440, giving up yesterday’s gains following a slump on Wall Street overnight.
The prospects of a resolution to the ongoing trade war between the US and China weakened, after US President Donald Trump said he’s not yet ready to make a trade deal with China.
This led to a sell-off in US stocks yesterday, which has impacted markets across Asia today.
Rare earths firms gain
Lynas Corp (ASX:LYC) shares surged 15.5% to $2.76, amid speculation China may restrict exports of rare-earths metals due to its trade dispute with the US.
Rare earths are used to make mobile phones, LEDs, electric cars and other high-value items. China dominates the global market, accounting for 71% of the global rare earths supply.
Consequently, rare earths exploration firms benefited, with Arafura Resources (ASX:ARU) jumping 22.9% to 8.6 cents and Peak Resources (ASX:PEK) rising 20.5% to 4.7 cents.