The ASX 200 advanced 110 points, or 1.3%, to close at 8,914 on Monday, extending the prior session’s gains and marking its highest finish in more than seven weeks. Sentiment was buoyed by a sharp rally in U.S. stock futures after Washington and Tehran agreed to an initial peace deal and to reopen the Strait of Hormuz.
On the domestic front, investors looked ahead to the Reserve Bank of Australia’s policy decision on Tuesday, with markets largely pricing in an interest rate hold following a run of soft economic data and three rate hikes since the start of the year. Attention also turned to China, Australia’s key trading partner, with May data on industrial production, retail sales, and the unemployment rate due for release.
Gains on the local market were broad-based, led by non-energy minerals, industrial services, logistics, and financials. BHP climbed 3.6%, while Rio Tinto rose 2.6%. Sigma Healthcare jumped 6.4% after terminating talks to acquire the UK’s Boots. The big four banks gained between 1% and 3%. By contrast, energy stocks underperformed, with Woodside shedding 5.1% and Santos falling 7.4%.
