ASX 200 Closes 0.3% Higher

The ASX 200 added 26 points, or 0.3%, to finish at 8,758 on Tuesday, breaking a run of muted sessions. A modest lift in U.S. futures helped sentiment after chip stocks rallied on Wall Street Monday amid optimism over Meta’s new artificial intelligence agent. Prospects of Middle East talks at the UN and an upcoming bilateral summit between the U.S. and China also buoyed risk appetite. Investors rotated into tech, consumer durables, manufacturing, and services, though gains were capped after Australia’s central banker warned upside inflation risks may be emerging as energy costs remain high and domestic demand stays firm, reinforcing bets on a rate hike next week. Caution also grew ahead of flash September Australia PMI and August labor data later this week. Tech names led, with Nextdc up 3.6%, Technology One 2.9%, and Wisetech Global 2.8%. Other standouts included Lynas Rare Earths (3.8%), ASX Ltd. (2.8%), and Qantas Airways (1.8%), underscoring selective strength across the market.

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.