Australian shares jumped 173 points, or 2.0%, to 8,753 in early trade on Tuesday, rebounding from the previous session’s losses as markets reopened after the holidays and U.S. equity futures strengthened. Sentiment improved following overnight gains on Wall Street, where the S&P 500 and Nasdaq each notched a fourth consecutive advance, marking their longest winning streaks since January.
Investors tracked signs of possible progress toward a U.S.-Iran ceasefire while weighing President Trump’s increasingly forceful warnings of further escalation if Iran refuses to reopen the Strait of Hormuz.
Gains on the ASX were tempered by PMI data showing that Australia’s services activity contracted in March for the first time since January 2024, as geopolitical tensions and rising costs weighed on demand.
All ASX 200 sectors participated in the rally, led by commercial services, non-energy minerals, financials, and logistics. Notable performers included Lynas Rare Earths (+5.3%), Northern Star Resources (+4.5%), BlueScope Steel (+3.1%), and BHP Group (+3.0%).
