FX.co ★ Australian Stocks Finish Higher

On Wednesday, the S&P/ASX 200 closed with a 0.8% increase to 8,928, continuing the upward trend from the previous day. This increase was primarily fueled by substantial gains in commodity-linked stocks, which surpassed the declines observed in the technology sector. The mining sub-index, a significant component, surged 3.7%, marking its highest single-day increase since April 10, 2025. This surge was driven by a resurgence in metal prices, particularly copper, which rebounded on the back of China's strategic stockpiling and improved investor sentiment. BHP, the largest publicly listed company in Australia, saw its share price increase by as much as 4.5%, reaching a new record of A$52.27, while Rio Tinto climbed 4.3% to hit an all-time high of A$159. The rise in bullion and oil prices amid escalating tensions between the US and Iran also benefitted gold miners and energy companies. Furthermore, banking stocks, which are sensitive to interest rate changes, closed significantly higher, likely buoyed by dip-buying and the anticipation that increased interest rates could ultimately bolster profitability for banks. Meanwhile, technology stocks experienced a 9.4% drop, reaching a two-year low, in tandem with their Wall Street counterparts as investors expressed concerns about AI intensifying competition among software manufacturers.