Australian equities jumped 124 points, or 1.4%, to 8,928 in early Monday trade, extending strong gains from the previous session and reaching their highest level in more than seven weeks. Sentiment was lifted by a sharp rise in U.S. stock futures after Washington and Tehran agreed to an interim peace deal, easing inflation concerns and reducing expectations of further interest rate hikes.
On the domestic front, optimism grew that the Reserve Bank will leave the cash rate unchanged at Tuesday’s policy meeting, following three hikes earlier this year. Still, some caution emerged ahead of China’s May activity data, with investors awaiting key releases on industrial production, retail sales, and unemployment from Australia’s largest trading partner.
Gains were broad-based, with nearly all sectors advancing, led by non-energy minerals, industrial services, consumer-related stocks, and financials. Notable performers included BHP Group (up 3.5%), Evolution Mining (8.3%), Sigma Healthcare (7.6%), and Northern Star Resources (5.7%), while the four major banks rose between 0.9% and 2%.
