Australian shares opened higher on Tuesday after US equities rallied on reports that the Trump administration is planning a more targeted approach to reciprocal tariffs set to be imposed on April 2, including “breaks” for certain countries.

The S&P/ASX 200 rose 0.6 per cent, or 50.1 points, to 7987 at the open, extending gains into a fourth day. The All Ordinaries also added 0.6 per cent. Eight of 11 sectors were in the green with technology leading the gains.

The ASX tracked a broad rally in US equities after President Donald Trump told reporters he could give “a lot of countries breaks” from tariffs. The comments spurred a rotation out of US government securities back into stocks as perceived economic risks eased.

Risk assets leapt. The technology-heavy Nasdaq rallied 2.3 per cent and Tesla surged 11.9 per cent, posting its strongest day this year with imminent tariffs on US automobile imports also boosting confidence in the stock. The VIX volatility index fell to its lowest in more than a month.

The US tech rally spilled onto the ASX. WiseTech added 1.4 per cent and Xero 1.5 per cent. Banks extended Monday’s gains with Commonwealth Bank rising 1.2 per cent. Westpac, NAB and ANZ all rose more than 1 per cent.

Elsewhere, James Hardie dragged the materials sector lower, shedding 3.5 per cent in early trading and extending Monday’s 14.5 per cent plunge. Investors fled the stock on concerns the $14 billion it will pay to acquire Azek is excessive.

Stocks on the move

Gold Road Resources leapt 8.6 per cent after rejecting an unsolicited $3.3 billion bid from rival Gold Fields. The hostile bid also has implications for Northern Star’s $5 billion deal to buy out smaller rival De Grey Mining, given that Gold Road owns a 17.3 per cent stake in the latter. Northern Star slipped 0.5 per cent and De Grey was flat.

Ampol shares were flat after it forecast $35 million worth of repair costs from ex-tropical cyclone Alfred after incurring damage to a crude storage tank.

New Hope Corporation slipped 1.5 per cent after downgrading the conversion price on $300 million worth of convertible bonds for the second time, from $6.55 a share to $6.24.

Helia bounced back from Monday’s steep plunge to rise 1.7 per cent. That was despite Morningstar downgrading its fair value price estimate for the stock after Commonwealth Bank further threw its existing contact with Helia in to question.

Atlas Arteria sank 3.4 per cent after it went ex-dividend.