In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 8,370.5 points.
Four ASX shares that are not letting that hold them back are listed below. Here's why they are climbing:
BHP Group Ltd (ASX: BHP)
The BHP share price is up over 3% to $41.93. This has been driven by news that China is planning to launch new stimulus next year to boost its economy. This led to commodity prices storming higher overnight amid hopes that it could lift demand. It isn't just BHP that is rising. The materials sector is up 2.8% at the time of writing.
Brainchip Holdings Ltd (ASX: BRN)
The Brainchip share price is up 14.5% to 25.2 cents. Investors have been buying this semiconductor company's shares after it announced a contract win in the United States. According to the release, Brainchip has been awarded a US$1.8 million contract from Air Force Research Laboratory (AFRL) for neuromorphic radar signalling processing. CEO Sean Hehir said: "Radar signaling processing will be implemented on multiple mobile platforms, so minimizing system SWaP-C is critical. This partnership to improve radar signaling applications for AFRL showcases how neuromorphic computing can achieve significant benefits of low-power, high-performance compute in the most mission-critical use cases."
Pilbara Minerals Ltd (ASX: PLS)
The Pilbara Minerals share price is up 7% to $2.30. This gain has also been driven by news of planned stimulus in China. Investors appear optimistic that this could lead to increased demand for electric vehicles, which itself could boost lithium demand and prices. Short sellers closing positions could also be supporting the buy side.
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine share price is up 4% to $11.97. There are a couple of reasons for this gain. One is the prospect of Chinese stimulus measures boosting demand for its luxury wine in the country. Another reason is the well-timed announcement of an acquisition in the massive market. Treasury Wine has entered into arrangements to acquire 75% of Ningxia Stone & Moon Winery (Stone and Moon) for a consideration of RMB 130 million (approximately A$27.5 million). It plans to evolve the Stone & Moon site in the future to create a local brand home for Penfolds. CEO Tim Ford said: "Today's announcement is a significant step forward for TWE, and Penfolds, in China. Through this acquisition, we will further strengthen our commitment to, and investment in, the China wine industry, where Penfolds continues to be a highly admired and sought after brand."
