Australia shares touch 2-week high, investors pin hopes on US-Iran peace deal

Australian shares hit a two-week peak on Thursday, led by miners and banks, as investors remained focused on the possibility that the United States and Iran are closing in on an agreement to end their conflict.

The S&P/ASX 200 index gained 1% to 8,880.30 by 0025 GMT, its highest level since April 22.

The benchmark finished 1.3% higher on Wednesday. Iran said overnight that it was reviewing a US peace proposal that sources told Reuters would formally end the war, while leaving key US demands that Iran suspend its nuclear program and reopen the key Strait of Hormuz unresolved.

That sent crude prices to two-week lows before they rebounded on Thursday.

Australia has been contending with stubborn inflation stemming from the oil shock since the start of the conflict in the Middle East.

Back in Sydney, miners surged 3.1% to touch a two-month peak, benefiting from higher iron ore and copper prices on hopes of a US-Iran peace deal.

BHP, Rio Tinto and Fortescue gained 3.9%, 2.7%, and 2.2%, respectively.

Among gold miners, sector leaders Northern Star Resources and Evolution Mining rose 1.8% and 4.4%, respectively. Financials advanced 0.6% to hit a two-week high.

Top lender Commonwealth Bank of Australia touched their highest level since late April, on pace to book a third straight day of gains.

Healthcare stocks and the industrials sub-index gained 0.6% each.

Energy stocks were an outlier on the benchmark, falling to their lowest since late April in parallel with the drop in oil prices.

Index majors Woodside Energy and Santos slipped 4.3% and 2.7%, respectively.

Among individual stocks, Tabcorp crashed as much as 28.3% after the country’s financial crimes watchdog launched a probe into the top gaming and wagering firm over concerns about its ability to manage money-laundering and terrorism-financing risks.

In New Zealand, the benchmark S&P/NZX 50 index gained 0.8% to 13,247.19, its highest since early April.