Australian shares set for best day since mid-June as Democrats' win sparks rally

Australian shares were on track for their best session since mid-June on Thursday, mirroring a rally in global equities as Democrats’ sweep of the US midterm elections boosted risk appetite and offset a sharp fall in National Australia Bank.

The S&P/ASX 200 index advanced 1.8% to 8,991.30 by 0102 GMT, putting it on course for its strongest daily gain since June 12.

The index had closed 0.6% lower on Wednesday.

Gains were broad-based, with nine of 12 sectors trading higher after global markets rallied overnight on expectations that Democrats’ control of both chambers of Congress would reduce policy uncertainty.

The election result also fuelled hopes that a shift in power away from Republicans could accelerate efforts to end the US-Israeli conflict with Iran, helping drive oil prices down more than 8%.

In Sydney, miners surged 6.1% and were set for their best day since early April 2025 after copper and iron ore prices rebounded overnight.

Rio Tinto and BHP rose more than 4% each.

Gold stocks jumped more than 9% after bullion prices surged overnight, helped by a weaker US dollar.

Technology stocks soared 8.2%, led by a more than 40% surge in NextDC after the data-centre operator described a stake build by entities linked to Goodman Group and Digital Realty as “opportunistic” and said it had received no takeover proposal.

Airlines also benefited from lower oil prices, with Qantas Airways and Virgin Australia gaining more than 4% each.

Among the few laggards, energy stocks fell more than 5%, while financials slipped 1%.

National Australia Bank slid as much as 7.9% after reporting a bigger-than-expected decline in full-year cash profit due to higher credit impairment charges and expenses.

Consumer staples, consumer discretionary, real estate and healthcare stocks gained between 2.1% and 2.9%.

New Zealand’s benchmark S&P/NZX 50 index rose 1.9% to 14,048.39, hitting its highest since late August.