Australian Stocks Extend Record Rally

The S&P/ASX 200 rose 0.4% to above 9,100 in early Thursday deals, extending its rally to a fresh record peak, as gains in local mining stocks and a strong tech-driven lead from Wall Street lifted the market. Local software stocks led the advance, climbing nearly 4.5% after upbeat earnings from US tech giants Nvidia and Oracle boosted optimism around the AI trade. Logistics software provider WiseTech Global extended gains, up over 6% to a two-week high, while Xero and Technology One added 5.5% and 3.7%, respectively. The heavyweight mining sector also rallied for the fourth straight session, rising 1.6% to an all-time high, driven by robust underlying commodity prices and a nearly 5% surge in Lynas Rare Earths after the world’s largest rare-earths producer posted its strongest first-half profit in three years. Meanwhile, the rate-sensitive financial sub-index fell 0.3% after hotter-than-expected inflation print a day earlier reinforced bets of additional rate hikes this year.

ASX200 increased to an all-time high of 9164.00 Index Points. Over the past 4 weeks, Australia Stock Market Index (AU200) gained 2.63%, and in the last 12 months, it increased 11.2%.

The S&P/ASX 200 climbed 1.2% to close at 9,128 on Wednesday, reaching an all-time high, as strong gains in mining stocks led the advance. Fortescue Metals surged 4.5% after reporting first-half revenue of $8.439 billion, up 10.5% from $7.638 billion a year earlier. The upbeat results lifted sentiment across the sector, with BHP Group climbing 2.8% and Rio Tinto adding 2.4%. Other gainers included National Australia Bank (1.2%), Woodside Energy Group (1.2%), and Block (1.9%). Meanwhile, investors weighed the hotter-than-expected inflation data, which reinforced expectations of further interest rate hikes this year. Australia’s annual inflation rate stood at 3.8%, slightly above market expectations of 3.7%, while the RBA’s trimmed mean CPI YoY edged up to 3.4%, compared with both forecasts and December’s 3.3% reading. Markets are now pricing in another rate increase in May, which could lift the cash rate to 4.1%, with roughly a 60% probability of an additional hike in November.