Australian Shares Rebound as Tech Leads

Australian equities rose 37 points or 0.4% to 8,769 in early Tuesday trade, snapping two sessions of muted moves as Wall Street’s overnight rally lifted sentiment amid softer oil prices and easing U.S. Treasury yields. Optimism was also supported by prospects of Middle East talks at the UN and upcoming U.S.–China meetings, though geopolitical tensions lingered. Gains were broad-based, led by tech, consumer durables, non-energy minerals, and consumer services. However, upside was capped by inflation worries after Reserve Bank Governor Michele Bullock struck a hawkish tone in parliament last week, keeping rate-hike risks alive. Separately, Australia’s four major banks now expect the central bank to raise rates next week, citing energy-driven inflation pressures. Standout movers included Wisetech Global (3.8%), Xero Ltd. (3.6%), Lynas Rare Earths (2.0%), and REA Group (1.6%). Investors now turn their focus to the flash September PMI and August labor data for further policy cues.

The ASX 200 closed flat at 8,732 on Monday, reversing early weakness as stronger U.S. stock futures lifted sentiment ahead of a bilateral summit between President Trump and Chinese leader Xi Jinping on September 24, expected to cover tariffs, minerals, and broader economic ties. Meanwhile, Treasury Secretary Bessent described his weekend talks with Chinese VP He Lifeng as “successful.” Consumer non-durables, financials, and utilities advanced, while healthcare, non-energy minerals, and logistics retreated. It was the second subdued local session, as traders continued to weigh Reserve Bank Governor Bullock’s warning that inflation remains stubbornly high, keeping rate-hike risks alive. Investors now await Australia’s flash September PMI and August labor data. Ramelius Resources jumped 6.2%, followed by Paladin Energy (3.4%) and Viva Energy (1.9%), while the big four banks rose between 0.4%–0.9%. On the downside, BHP Group (-0.4%), Xero Ltd. (-4.3%), and Lynas Rare Earths (-2.6%) lagged.

Australian shares fell 24 points, or 0.3%, to around 8,705 on Monday morning, marking a second subdued session. The decline came even as oil prices eased on signs of progress in efforts to defuse the Middle East conflict. Locally, Reserve Bank of Australia Governor Michele Bullock struck a hawkish tone in parliament, warning that inflation remains stubbornly high, keeping the risk of further rate hikes alive. Still, losses were capped by a notable rise in U.S. stock futures, as investors focused on the upcoming bilateral summit between U.S. President Trump and Chinese leader Xi Jinping at the White House Thursday. Healthcare, non-energy minerals and industrials led declines, while gains in consumer durables, utilities and technology provided some offset. Two of the four major banks slipped, while Nextdc Ltd. (-1.6%), Xero Ltd. (-1.5%) and Reece Ltd. (-1.3%) posted notable losses. Investors now await Australia’s flash September PMI and August labour-market data later this week.