Australian shares surge on hopes of de-escalation of Mideast conflict

Australian shares jumped on Wednesday, with miners and financials gaining the most, as reports of potential de-escalation in the month-long Middle East conflict improved investor sentiment and eased concerns about inflation.

The S&P/ASX 200 index was up 1.6% at 8,618.80 points by 2323 GMT.

The benchmark tanked 7.8% in March, its biggest monthly fall since June 2022.

Unconfirmed reports that Iran’s president said the country was ready to end the month-long war and a report that US President Donald Trump had told aides he is willing to end the military campaign, fuelled hopes of potential de-escalation of the Middle East conflict and raised sentiment.

In Sydney, miners steered gains on the benchmark and rose as much as 4.7% to their highest level in nearly three weeks, as aluminium prices hovered near their four-year highs.

BHP Group, Rio Tinto and Fortescue gained between 4.4% and 1.7%.

Gold stocks advanced as much as 6.6% to their highest level since March 16 on rising bullion prices.

Financials gained as much as 1%, with Commonwealth Bank of Australia and Westpac Banking gaining 0.7% and 0.3%.

However, National Australia Bank was down 0.1% while ANZ Group was flat.

Energy stocks dropped as much as 2.5% as oil prices declined on reports that Iran may be ready to end the war.

The sub-index gained as the Middle East conflict drove crude prices above $100 a barrel, to end March 18.5% higher, its best month since November 2020.

Meanwhile, Australian Treasurer Jim Chalmers said small businesses affected by the ongoing war in Iran would be given easier access to credit.

In New Zealand, the benchmark S&P/NZX 50 index was up 0.4% at 12,968.28 points.