Australian shares rose on Thursday, recovering from the previous session’s losses, as investor sentiment improved following U.S. President Donald Trump’s statement that he is “highly unlikely” to fire Federal Reserve Chair Jerome Powell.
At 0038 GMT, the S&P/ASX 200 index advanced 0.5% to 8,602.2 points, led primarily by gains in financials and technology, while resource stocks also contributed modestly to the rebound.
Financials Lead the Charge
Australia’s financial sector was at the forefront of the rally, rising 0.5%. The country’s “Big Four” banks recorded gains between 0.3% and 1%, benefiting from the improved global mood and a decline in interest rate uncertainty.
Mining Sector Gains on China Optimism
Miners added 0.2%, supported by rising iron ore prices and renewed optimism over Australia-China trade ties.
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BHP Group rose 0.2%
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Rio Tinto climbed 1.2%
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Fortescue Metals added 0.8%
The strengthening of diplomatic and economic engagement between Australia and China, the world’s largest consumer of iron ore, provided a much-needed tailwind for the sector.
Australian Shares Rebound as Financials Rally Amid Eased Tariff Tensions
Energy and Tech Stocks Mixed
Energy shares traded in a narrow band, mirroring crude market movements. Santos, the country’s second-largest gas producer, reported a 2% decline in Q2 sales revenue, mainly due to weaker global oil and gas prices. However, stronger domestic gas volumes supported investor confidence, pushing the stock up by 0.1%.
Technology stocks followed Wall Street’s lead, with the sector gaining 0.5%. Xero, a major player in cloud-based accounting software, rose 0.7%.
Gold Stocks Retreat
Gold miners fell 0.2%, reversing gains made on Wednesday, as bullion prices slipped after Trump downplayed any immediate plans to remove Powell, easing safe-haven demand.
New Zealand Also in the Green
Across the Tasman Sea, New Zealand’s S&P/NZX 50 index advanced 1% to close at 12,894.2 points, tracking regional gains and local optimism.
Outlook
Investors appear to be regaining confidence, but markets remain alert to global political signals and upcoming earnings from U.S. tech giants. In Australia, a steadying dollar and improving trade outlook with China could sustain positive sentiment—at least in the short term.
