Stocks in Australia Hit 5-week High

Australian equities surged 124 points, or 1.4%, to 8,928 in early Monday trade, building solid gains from the previous session and marking their highest level in over seven weeks. Sentiment was buoyed by a surge in U.S. stock futures after Washington and Tehran reached an interim peace deal, easing inflationary pressures and reducing the likelihood of further rate hikes. Locally, optimism mounted that the Reserve Bank will hold cash rates steady at Tuesday’s policy meeting following three increases earlier this year. However, caution set in ahead of China’s May activity data, with investors awaiting figures on industrial output, retail sales, and unemployment from Australia’s largest trading partner. Nearly all sectors advanced, led by non-energy minerals, industrial services, consumers, and financials. Standouts included BHP Group (3.5%), Evolution Mining (8.3%), Sigma Healthcare (7.6%), and Northern Star Resources (5.7%), while the four big banks rose between 0.9% and 2%.

ASX200 increased to 8852.00 Index Points, the highest since May 2026. Over the past 4 weeks, Australia Stock Market Index (AU200) gained 3.51%, and in the last 12 months, it increased 2.99%.

The ASX 200 soared 171 points, or 2%, to end at 8,604 on Friday, marking its largest single-day rise since April 8 and hitting a one-week high. The rebound erased earlier weakness, leaving the index 2.1% higher for the week after Wall Street’s rally the day before. Sentiment was boosted by easing U.S.–Iran tensions, with President Trump hinting a peace deal could be signed this weekend, though Tehran stressed no final decision was reached. Locally, softer jobs and inflation data bolstered hopes the central bank will pause next week after delivering three rate hikes earlier this year. Gold miners surged 5.6%, led by Evolution Mining (6.7%) and Northern Star (5.2%), while BHP and Rio Tinto advanced 3.1% and 2.7%. The big four banks added between 1% and 1.7%. Energy lagged, with Santos off 0.6%. Woodside eased 1.3% after invoking its pre-emptive right to acquire PetroChina’s 10.67% stake in the Browse gas fields off Western Australia, effectively blocking a deal with Japan’s Inpex.