Broad Sector Strength Lifts ASX 200 to Two-Week Peak

The S&P/ASX 200 rose 85 points or near 1% to finish at 8,878 on Thursday, marking strength for the second straight session following record closes on Wall Street Wednesday, amid a strong earnings season and mounting hopes that the U.S. and Iran were closing in on an agreement to end the war. Australian markets stayed at their highest level in two weeks, boosted by gains in most sectors led by process industries, non-energy minerals, consumers, and producer manufacturing. However, gains were capped by March trade data showing the first trade deficit since December 2017, as imports hit record peaks but exports fell. Meantime, inflation jitters persisted as the Reserve Bank warned that surging fuel costs from the Middle East conflict could ignite second-round pressures in Australia, despite three rate hikes already this year. Among top movers were BHP Group (3.8%), Fortescue (3.7%), Evolution Mining (6.3%), and Lynas Rare Earths (3.6%). Also, two of the big four lenders posted gains.

Australian equities climbed 84 points or nearly 1.0% to 8,878 on Thursday morning session, extending strong gains from the prior day following record closing highs on Wall Street Wednesday amid a potential agreement between the U.S. and Iran to end the Middle East conflict. Local markets held their highest level in two weeks, with nearly all major sectors advancing, led by process industries, non-energy minerals, consumer durables and non-durables, and transport. However, strength was capped by vigilance ahead of Australia's trade data for March later today following February's rise in exports and a fall in imports. Meanwhile, inflation worries lingered as the central bank cautioned that higher fuel costs from the Middle East conflict risked sparking second-round effects, even after three rate hikes this year. Three of the big four lenders rose between 1% and 2%. Other standouts were BHP Group (3.6%), Fortescue (2.3%), Evolution Mining (4.1%), and South32 Ltd. (3.5%).

The S&P/ASX 200 surged 113 points or 1.3% to close at 8,794 on Wednesday, ending two sessions of losses and nearing a two-week high. A solid rise in U.S. stock futures boosted sentiment after Wall Street hit record highs, as President Trump signaled a comprehensive deal with Iran was close and paused naval operations in the Strait of Hormuz. Regional confidence was reinforced by stronger April manufacturing and services data in China, Australia’s top trading partner. However, gains were capped by caution ahead of Australia's trade data later this week. On the policy front, the Reserve Bank raised rates for a third straight meeting on Tuesday, in line with expectations, but warned that higher fuel costs from the Middle East conflict risk second-round inflation effects. Sector gains were broad, led by non-energy minerals, logistics, and financials. PLS Group climbed 3.3%, followed by Fortescue (3.2%), BHP (3.0%), and Evolution Mining (2.2%). The big four banks rose between 2.8% and 3.5%.