Australian shares rose on Tuesday, led by gains in banks and miners, as US President Donald Trump’s announcement of the Iran-Israel ceasefire lifted investor sentiment globally.
The S&P/ASX 200 index advanced 1.1% to 8,569.50 points by 0055 GMT.
The benchmark was set to snap five consecutive sessions of losses.
In a post on his Truth Social site, Trump said a “complete and total” ceasefire between Israel and Iran will go into force with a view to ending the 12-day conflict between the two nations.
“Markets are likely to look past the issue for as long hostilities remain localised… and Iran avoids blockading the Strait of Hormuz,” said Kyle Rodda, a senior financial market analyst with capital.com. Financials hit a record high, climbing 1.8%.
The “Big Four” banks added between 1.4% and 2.1%.
Miners advanced 1.5% in their strongest trading session in more than two months on the back of stronger iron ore prices due to improving short-term demand prospects in top consumer China.
BHP and Rio Tinto gained 1.9% and 2.2%, respectively.
Bucking the trend, energy stocks fell as much as 5.1% to a one-week low and were set to snap two sessions of gains as oil weakened after the ceasefire announcement relieved worries of supply disruption in the area.
Woodside and smaller peer Santos lost 6.5% and 1%, respectively.
Australian shares set for first weekly drop in six as Middle East conflict weighs
Woodside was also among the benchmark’s top losers. Markets now await local consumer price index data later this week for further cues into the Reserve Bank of Australia’s interest rate trajectory.
New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 12,571.02 points.
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