Australian shares hit 2-1/2-month high as lower oil prices fuel broad rally
- The S&P/ASX 200 jumped 1.1% to 9,129, its highest since August 26
Australian shares rose to a two-and-a-half-month high on Tuesday as lower oil prices boosted risk appetite, with miners and gold stocks leading broad-based gains.
The S&P/ASX 200 jumped 1.1% to 9,129, its highest since August 26.
However, the benchmark’s relative strength index hovered near 70, indicating it was approaching overbought territory.
Oil prices slipped after US President Donald Trump downplayed the need for military action against Iran, easing inflation concerns that have weighed on markets this year.
Australia has also been insulated from AI-led volatility that has jolted most markets globally, given its limited exposure to the technology.
“There’s less volatility on the up and downside of tech,” said Colin Dransfield, associate director at Aegis Lane Investments, trading as Sigma Signals.
Dransfield said he sees “some green shoots emerging” and expects capital to flow back into Australia even if enthusiasm for AI continues elsewhere, with resource stocks likely to be the main beneficiaries.
Miners rose 1.5% to a near one-month high on firmer copper prices, with BHP up 1.1% and Rio Tinto gaining 0.4%.
Gold stocks gained 2.3% to hit their highest level in a month and a half.
Financials gained 1.1% in their best session in nearly two weeks, recovering from a 1% decline on Monday.
Top lender Commonwealth Bank of Australia rose 1.8% ahead of its first-quarter results on Wednesday.
Australia’s 10-year bond yield edged 2.3 basis points lower to 4.99%, supporting rate-sensitive property stocks, which jumped 2.2%.
Among individual stocks, Qantas Airways rose 6.3% to a 12-week high after saying it would cut 850 Australian jobs.
Rival Virgin Australia added 1.8%.
Separately, Canberra said it would require AI firms to report breaches, adding to the regulatory scrutiny that has rattled AI-linked stocks globally. Local tech stocks were up 0.3%.
Investors now await US consumer price data due later in the day for clues on the Federal Reserve’s policy trajectory.
In New Zealand, the S&P/NZX 50 leapt 1.4% to a record 14,167.41.
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