Australian shares settled at a record high closing level on Tuesday, driven by gains in banks, healthcare and technology stocks, as investors shrugged off tariff worries.
The S&P/ASX 200 index ended 0.7% higher at 8,630.30 points. The benchmark traded flat on Monday.
Investors were unfazed by tariff concerns, having grown accustomed to U.S. President Donald Trump’s unpredictable trade announcements and last-minute reversals.
“Traders now view the tariff threats as a bargaining tool and perhaps believe they’ll settle at something digestible,” said Philip Pepe, senior analyst with Shaw and Partners.
In Sydney, heavyweight financials led the surge with a 0.8% rise with the “Big Four” banks rising between 0.2% and 0.7%.
Citi analysts said the improving earnings outlook was boosting banks’ shares, as the near-term prospects appeared more promising.
“We expect earnings to hold up this year as the impact from lower rates takes time to manifest in bank earnings,” Citi analysts wrote in a note.
IT stocks rose 2.3%, having gained 2.5% earlier in the session. The sub-index mirrored its U.S. peers, with tech-heavy Nasdaq ending at a record high.
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On the Sydney bourse, tech giant WiseTech rose 2.1%.
Healthcare stocks added 2.1%, led by biotech giant CSL, which rose 3.6% to hit the highest since May 29 after it confirmed that it will trim its research and development division.
Among other sectors trading in green, energy stocks rose 0.6% while consumer staples advanced 0.5%.
The mining sub-index, however, fell 0.5% on profit-taking, snapping three sessions of consecutive gains.
Mining giant BHP Group fell 1% while iron ore miner Rio Tinto lost 1.5%, a day ahead of its quarterly production results.
New Zealand’s benchmark S&P/NZX 50 index ended the day flat at 12,689.63 points.
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