Australian shares were headed for their sixth straight half-yearly rise on Monday, driven by easing geopolitical and trade tensions and hopes of rate cuts by the local central bank.
The S&P/ASX 200 index rose 0.2% to 8,530.60 points by 0023 GMT.
The benchmark was on track to rise 4.5% for the first half of 2025.
Domestic equities recouped from a trough hit in early April as easing US-China trade tensions and an Israel-Iran ceasefire boosted risk appetite.
Gold stocks were poised to soar more than 35% in the first six months of 2025, in what could be its best half-year since 2016’s first half, as geopolitical tensions and tariff worries drove safe-haven demand.
However, the sub-index fell 1% on the day as bullion prices eased.
Energy stocks, which fell 0.7%, were highly volatile in the half-year as the Israel-Iran conflict fuelled oil supply concerns.
The sub-index was largely unchanged for the half year.
Meanwhile, miners retreated 1.3% after surging more than 2% on Friday.
Australian shares wipe out early gains as banks drag
Further leading the benchmark higher were prospects of rate cuts by the Reserve Bank of Australia (RBA) as domestic inflation eased.
Swaps implied a 92% probability that the RBA would cut rates by a quarter-point at its upcoming policy meeting on July 8.
Local investors awaited the retail sales data for May due on Wednesday for further clues into rate cuts.
Financials rose 0.7%, with the “Big Four” gaining between 0.3% and 0.8%.
The sub-index was on track to jump more than 10% for the half-year.
In company news, Star Entertainment said it received a notice from Hong Kong’s Far East Consortium International and Chow Tai Fook Enterprises to terminate the deal to sell its 50% stake in its Queen’s Wharf project in Brisbane.
However, shares rose 1.7%. New Zealand’s benchmark S&P/NZX 50 index was largely unchanged at 12,580.56 and was set for its worst half-year since the first half of 2022.