ASX materials shares led the ASX 200 market sectors last week with a 4.17% gain over the five trading days. ASX real estate investment trusts (REITs) also had a strong run, gaining 4.04%.
The S&P/ASX 200 Index (ASX: XJO) soared by 1.95% to close out the week at 8,099.9 points.
On Friday, the benchmark rose to its highest level in six weeks, reaching an intraday high of 8,143.6 points. This was just shy of its all-time record high of 8,148.7 points, reached on 1 August.
Nine of the 11 market sectors finished the week in the green.
Let's recap.
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Materials shares led the ASX sectors last week
The materials sector incorporates ASX mining shares as well as companies supplying chemicals, industrial gases, construction materials, product packaging, and paper and forest products.
Let's take a look at how the sector's largest stocks performed, starting with the world's biggest miner by market capitalisation, BHP Group Ltd (ASX: BHP).
BHP shares rose 2.59% over the week to finish at $39.60 per share on Friday. Rio Tinto Ltd (ASX: RIO) shares did even better, rising 4.68% to $111.42 apiece.
The Fortescue Ltd (ASX: FMG) share price rocketed 7.96% to close at $17.50 on Friday.
The major miners lifted despite no price-sensitive news from any of them last week. However, the iron ore price slightly improved last week after new data showed a spike in Chinese steel exports in August.
China's exports lifted at their fastest pace in almost 18 months in August due to manufacturers trying to get ahead of newly increased tariffs among the country's trading partners.
According to Trading Economics, September is seen as the peak season for steel consumption in China.
ASX gold miners also had a strong week as the gold price rose to a new record high amid a weaker dollar, lower bond yields and expectations of the first cut in United States interest rates next week.
The biggest gold mining stock, Northern Star Resources Ltd (ASX: NST), ripped 7.66% higher last week to finish at $15.60 on Friday. Newmont Corporation CDI (ASX: NEM) shares rose 4.22% to $78.70.
Neither company released any price-sensitive news last week. The S&P/ASX All Ordinaries Gold Index (ASX: XGD) went 8.67% higher over the five trading days.
Trading Economics said new economic data had heightened expectations of a 50-basis point cut:
Markets now anticipate a 59% chance of a 25 bps cut and a 41% chance of a 50 bps reduction, according to the CME FedWatch tool. In Europe, the ECB cut rates by 25 bps as expected, reflecting growing confidence among policymakers that inflation is on a sustained downward path.
Now let's take a look at some of the non-mining ASX materials shares.
The largest non-miner in the sector is building materials supplier James Hardie Industries plc (ASX: JHX). The James Hardie share price dipped 1.37% last week to $53.21 on no price-sensitive news.
Shares in plastics packaging company Amcor CDI (ASX: AMC) fell 1.78% to $16.30. Shares in explosives company Orica Ltd (ASX: ORI) lifted 0.56% to $17.81. Neither company issued price-sensitive news.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Materials (ASX: XMJ) | 4.17% |
| A-REIT (ASX: XPJ) | 4.04% |
| Energy (ASX: XEJ) | 1.86% |
| Utilities (ASX: XUJ) | 1.8% |
| Information Technology (ASX: XIJ) | 1.5% |
| Industrials (ASX: XNJ) | 0.94% |
| Consumer Staples (ASX: XSJ) | 0.81% |
| Consumer Discretionary (ASX: XDJ) | 0.69% |
| Healthcare (ASX: XHJ) | 0.10% |
| Communication (ASX: XTJ) | (0.16%) |
| Financials (ASX: XFJ) | (0.79%) |
