Asia
Australian Shares Climb; Guzman y Gomez Exiting US Market, Expects One-Off Impact of Up to $40 Million
Australian shares climbed up on Friday as optimism prevailed over a potential peace agreement between the US and Iran to end the conflict in the Middle East.The S&P/ASX 200 Index rose 0.41%, or 35.30 points, to close at 8,657.Brent crude oil futures rose by around 2% to trade at nearly $105 per barrel. US Secretary of State Marco Rubio said there were "some good signs" in talks with Iran. However, differences remain over the control of the Strait of Hormuz and the nuclear issue.On the domestic front, Australia's housing demand took a measurable hit in the March quarter, and total loan commitments fell 6.2% in the quarter due to central bank rate hikes and low confidence, Cotality said in a report. The overall value of lending dropped by 3.8%. However, both measures remained higher than in March 2025.Westpac points to quarter-over-quarter gross domestic product growth of around 0.4% in the March quarter, with a range of 0.3% to 0.55%. The bank's framework points to growth stalling at just 0.1% quarter-over-quarter in the June quarter. The longer the Middle East conflict persists, alongside other sources of uncertainty, the greater the risk of a contraction in the June quarter.In company news, Guzman y Gomez (ASX:GYG) is exiting the US market with immediate effect as the business has not delivered sales momentum and is not meeting financial targets. As a result of the exit, the company expects to recognize a one-off profit and loss impact of between $30 million and $40 million in its 2026 results. Its shares were up 10% on market close.Tuas (ASX:TUA) said the sale and purchase agreement between it and its unit, Simba Telecom, and Keppel Konnect and Konnectivity regarding Simba's purchase of the shares in M1 was terminated.Lastly, Mayne Pharma Group (ASX:MYX) is entitled to nearly AU$13.3 million in legal costs following court proceedings against Cosette Pharmaceuticals in the New South Wales Supreme Court last year. Its shares closed up 3%.
ASX 200ASX:GYGASX:MYXASX:TUA
