ASX 200 Soars to Strongest Gain Since Early February

The S&P/ASX 200 jumped 155 points, or 1.85%, to close at 8,534 on Wednesday, its strongest daily advance since February 9 and extending the prior session’s strength. The rally tracked a rebound in U.S. futures after President Donald Trump signaled progress in talks to end the Middle East war, including concessions from Tehran, lifting global risk appetite. Domestically, Australia's annual inflation eased unexpectedly, with headline CPI edging lower to 3.7% in February from 3.8% in the prior two months, while trimmed mean CPI slipped to 3.3%, below forecasts and January's reading of 3.4%. Markets now price a roughly 50% chance of an RBA rate hike to 4.35% in May. Mining stocks gained, with Rio Tinto climbing 1.6% after a AUD 2 billion government pledge to support Boyne smelter operations. Financials rose 1.3%, while gold miners surged 8.2%, driven by Evolution Mining (8.5%). In contrast, energy lagged, with Santos down 2.3% and Woodside off 3.2%.

Australian stocks climbed 107 points, or 1.3%, to 8,486 in Wednesday morning trade, extending gains for a second session amid a rally in U.S. equity futures. Sentiment was buoyed by reports that Washington, via Pakistan, had sent Iran a 15-point plan to end the Middle East conflict, with regional mediators awaiting Tehran’s response ahead of possible high-level talks Thursday. However, caution prevailed before the release of Australia's inflation data for February later today, after January’s reading held at 3.8% for a second month, above the Reserve Bank’s target and market forecasts. Most sectors advanced, led by non-energy minerals, logistics, consumers, and transport. Rio Tinto rose 1.7% after striking a deal with the Queensland government to keep its Boyne aluminum smelter open, shifting toward renewable power to offset rising fossil fuel costs. Other notable movers included Evolution Mining (5.9%), Lynas Rare Earth (2.5%), BHP Group (2.3%), and Macquarie Group (2.1%).

The S&P/ASX 200 edged 0.2% higher to finish at 8,379 on Tuesday, surrendering part of its earlier gains as market sentiment softened following Iran’s denial of talks with the US. Washington postponed planned strikes on Iranian energy infrastructure by five days, citing talks with Tehran. However, Iran denied any negotiations, accusing the US of spreading misleading information that could distort global markets. Domestically, the manufacturing PMI fell to a five-month low of 50.1 in March 2026, while the services PMI contracted for the first time since January 2024, at 46.6. Meanwhile, the European Union and Australia sealed a free-trade deal, ending nearly a decade of talks to strengthen ties and uphold a rules-based order challenged by the Trump administration. Heavyweight mining stocks were among the top performers, namely BHP Group (3.4%), Rio Tinto (3%), and Fortescue (3.7%). In contrast, banking stocks led the declines, with CBA, Westpac, and NAB falling 1.1% to 4%.