• ASX was up by more than 1.65%
  • Tech and Miners led the rally
  • RBA governor Phil Lowe “would have done things differently in hindsight”

The ASX surged by 1.65% on Wednesday in a tech and mining driven rally.

It’s been the best day for the ASX in weeks, with only a handful of companies on the ASX 200 trading lower.

The Tech sector was up almost 4%, tracing the movement in the Nasdaq overnight.

US tech stocks were lifted by the better than expected quarterly results from Netflix, which jumped 6% after reporting that it lost only 970k subscribers in the second quarter, less than what analysts feared. The Netflix share price however has lost almost 70% this year.

The mining sector also rose by 3% as majors Fortescue (ASX:FMG) and Mineral Resources (ASX:MIN) rallied.

Meanwhile, RBA boss Philip Lowe delivered the keynote address at The Australian’s Strategic Business Forum in Melbourne this morning.

Lowe admitted that he might have done things differently with the benefit of hindsight, saying the RBA had provided “too much support” during the pandemic which contributed to higher inflation.

“Household spending, in particular, recovered more quickly from the pandemic than was expected,” Lowe said.

“Looking at this experience with hindsight, I can understand why some people might conclude that too much support was provided by governments and central banks.

“But it is important to remember the context in which this support was provided. At the time the decisions were made, the outlook was dire,” he said.

Looking ahead, a slew of Q2 earnings reports will drop in the US and Australian in the coming days, including the US mega techs next week.

BIG CAP WINNERS

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Megaport (ASX:MP1) was the biggest winner in large caps today, up by 22% after reporting that monthly recurring revenue (MRR) for of $10.7 million, an increase of 13% QoQ. Revenue for the quarter was $30.6 million, up 10% QoQ.

Fellow tech leader Brainchip (ASX:BRN) was also up 13% on no news.

Beach Energy (ASX:BPT) was up just 1% after posting its best quarterly earnings in more than three years. Beach’s quarterly production was up 9% to 5.6 MMboe, and quarterly revenue was up 10% to $504 million.

Star Casino’s owner Star Entertainment Group (ASX:SGR) was up 1% after announcing the appointment of Scott Wharton as CEO of The Star Sydney, and Group Head of Transformation, pending all necessary regulatory approvals.

Wharton joins The Star from the Commonwealth Bank of Australia, where most recently he was a member of CBA’s executive leadership team as group executive, Program Delivery.

BIG CAP LOSERS

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