Australian Stocks Hit March highs on Broad Gains

Australian equities jumped 109 points or 1.2% to breach the 9,000 level in early deals on Wednesday, advancing for the third straight session and reaching their highest level since early March. Stronger U.S. futures underpinned the rally after Wall Street closed mostly higher, buoyed by optimism over U.S.–Iran peace talks. Gains were broad-based across tech, healthcare, non-energy minerals, and commercial services, though momentum was tempered by caution ahead of June and Q2 inflation data due later today. Persistent price pressures remain in focus despite three RBA hikes this year, and Governor Michele Bullock reiterated the board’s readiness to tighten further if needed. Among individual stocks, Rio Tinto surged 4.5% after lifting its interim dividend on the back of a 47% profit jump. Meanwhile, Woodside Energy added 0.9% following a 28% rise in quarterly revenue. Meanwhile, the big four banks were subdued against the broader market’s upswing.

The ASX 200 rose 54 points, or 0.6%, to close at 8,948 on Tuesday, rebounding from early weakness and marking a second straight gain. Sentiment brightened after U.S. President Trump said Washington was having “good talks” with Iran and that a deal was possible, easing fears of supply disruptions and sending oil prices lower. Locally, Australia is weighing its first new oil refinery in over six decades as the Middle East war squeezes supplies. Gains were broad-based, led by commercial services, healthcare, transport, and financials. The big four banks were up between 0.7% and 1.2%. Also, Sonic Healthcare rose 2.2%, along with Sigma Healthcare (1.8%), and Ramsay Health (1.2%). In contrast, Origin Energy edged lower after flagging possible data exposure affecting about 900,000 customers in a cybersecurity incident. Traders now await Australia’s June and Q2 inflation reports due Wednesday, with sticky price pressures still in focus despite three rate hikes by the Reserve Bank this year.

Australian stocks fell 28 points or 0.3%, to 8,866 on Tuesday morning trade, unwinding the prior day rally as weaker U.S. equity futures weighed on sentiment following another sharp sell-off in chipmakers on Wall Street overnight. Investors also grew cautious ahead of Australia’s June and Q2 inflation reports later this week, with sticky price pressures still a concern. Meanwhile, Reserve Bank Governor Michele Bullock is due to speak later today while the U.S. Federal Reserve’s policy rate decision also looms. Still, losses were partly contained after U.S. President Trump said Washington and Tehran were engaged in diplomatic talks to ease tensions. Separately, Iran and Oman are trying to reach an agreement to restart shipping through the Strait of Hormuz. Tech, non-energy minerals, and industrial services led declines. The big four banks eased between 0.1% and 0.7%. Heavyweights BHP Group fell 1.0%, along with Evolution Mining (-1.8%), Santos Ltd. (-1.3%), and Macquarie Group (-1.1%).