Australian shares rise nearly 1% as Middle East de-escalation boosts sentiment

Australian shares climbed nearly 1% on Monday and were on track for their best session in more than three weeks, as stronger copper prices and easing Middle East tensions boosted risk appetite and lifted mining and financial stocks.

The S&P/ASX 200 index rose 0.9% to 8,851.30 points as of 0011 GMT, set for its best session since July 3. The benchmark fell 0.8% on Friday.

Investor sentiment improved after signs of a de-escalation in the Middle East eased concerns about energy supplies and broader economic risks.

Tehran said it would halt attacks as long as Washington refrains from further strikes, after the Pentagon paused its 13-night campaign late on Friday, helping send oil prices down about 5% over the weekend.

In Sydney, miners gained 2.1%, recovering some of their losses after sliding over 3% on Friday as copper prices inched higher.

Sector majors Rio Tinto and BHP added 1% and 1.4%, respectively.

Gold miners rose on firmer bullion prices and advanced 5.1%, on track for their best session in more than three weeks.

Evolution Mining and Northern Star Resources climbed 4.7% and 3.9%, respectively.

Investors await the second-quarter inflation print, due on Wednesday, for hints on the Reserve Bank of Australia’s rate trajectory, with the central bank due to meet again next month.

Markets have priced in nearly a 30% chance the central bank could lift the cash rate at its next meeting.

Financials rose as much as 0.7%, their highest since April 22.

All the “Big Four” banks gained between 0.4% and 0.9%.

Technology stocks jumped 3.8%, poised for their best session since June 29, after losing more than 10% over two weeks.

Bucking the trend, energy shares slid as much as 3.3% in their worst session since June 17.

Major energy producers Santos and Woodside Energy declined 3.8% and 2.5%, respectively. New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to 13,719.90 points.