ASX 200 Closes 0.4% Higher

The ASX 200 added 36 points, or 0.4%, to finish at 8,732 on Thursday, extending gains from the prior session as U.S. stock futures rallied after the Federal Reserve raised borrowing costs for the first time since 2023. Analysts said the move bolstered the central bank’s credibility and reassured markets of its resolve to curb inflation. Locally, bargain hunting persisted after Australian shares hit a near ten-week low earlier this week, driving strength in financials, industries, and logistics. The big four banks surged between 1.3% and 2.6% after a volatile week shaped by rising domestic rate expectations. Insurers also advanced, with QBE up 1.1% and Insurance Australia 0.6% higher. Energy stocks lagged after oil prices retreated on a surprise build in U.S. crude inventories, while miners were subdued, with BHP edging lower and Rio Tinto flat. Traders now anticipate remarks from Reserve Bank Governor Michele Bullock, who is scheduled to testify before Parliament on Friday.

Australian equities advanced 43 points, or 0.5%, to 8,739 in early Thursday trade, extending prior gains as a rebound in U.S. stock futures lifted sentiment after an overnight retreat on Wall Street following the Federal Reserve’s first rate hike in three years. Bargain hunting persisted following a near ten-week local low earlier this week, with investors weighing sticky inflation and the likelihood of another Reserve Bank move later this month. Meanwhile, Reserve Bank Governor Michele Bullock is scheduled to testify before Parliament on Friday. In top trading partner China, mixed August data spurred hopes of fresh stimulus, offering some support. Financials, tech, and manufacturing led advances, offset by weakness in healthcare and resources. The big four banks rallied alongside insurers QBE (1.9%) and IAG (0.8%), while Qantas (2.2%), Bluescope Steel (2.1%), and Ramsay Health Care (1.2%) also outperformed. Energy lagged, with Woodside down 1.5% and Santos off 2.1%.

The ASX 200 added 24 points, or 0.3%, to close at 8,697 on Wednesday, reversing the prior session’s losses as strength in consumer durables, energy minerals, and non-energy minerals lifted sentiment. Firmer U.S. stock futures provided support ahead of the Fed’s policy decision, while traders monitored elevated oil prices and geopolitical tensions. Bargain hunting also emerged after local markets slipped to a near ten-week low amid sticky inflation and prospects of another Reserve Bank rate hike later this month. In China, Australia's top trading partner, August data showed mixed signals, fueling hopes of fresh stimulus from Beijing. Heavyweight BHP Group rose 1.3%, and Rio Tinto gained 0.8%. Energy names advanced, with Woodside Energy up 2.9%, Santos 2.3%, and Ampol 2.6%. The big four banks were mixed, with NAB and Commonwealth Bank lower, while Westpac and ANZ were little changed. Investors now await Governor Bullock’s testimony before Parliament on Friday for further policy cues.