The ASX 200 rose 0.2% to close at 8,680 on Monday, snapping earlier losses as gains in utilities, industrials, and healthcare supported the market. Sentiment improved after the government reported that the 2025/26 budget deficit was about $6 billion smaller than previously forecast, reflecting stronger investment and income.
In China, industrial profits for the January–August period posted solid growth, although the pace slowed amid uneven economic activity. Upside for the local market was limited, however, by a sharp decline in U.S. stock futures as oil prices climbed following President Trump’s rejection of Iran’s ceasefire terms. At the same time, U.S. Treasury yields remained near multi-year highs on expectations of further Federal Reserve tightening.
Domestically, the Reserve Bank is expected to raise the cash rate for the fourth time this year in an effort to rein in inflation.
Among individual names, Northern Star Resources advanced 6.2% after it rejected a $38 billion takeover offer from Gold Fields. CSL gained 2.8%, while the big four banks added between 0.5% and 1.6%. On the downside, notable decliners included Genesis Minerals (-5.8%), Lynas Rare Earths (-3.2%), and Nextdc (-2.7%).
