Australian equities climbed 37 points, or 0.4%, to 8,769 in early Tuesday trade, breaking a two-session stretch of subdued moves. Sentiment improved following an overnight rally on Wall Street, helped by softer oil prices and easing U.S. Treasury yields. Risk appetite was further supported by hopes for diplomatic progress, with Middle East talks at the UN and upcoming U.S.–China meetings in focus, although geopolitical tensions remained elevated.
Gains were broad-based, led by technology, consumer durables, non-energy minerals, and consumer services. However, upside was restrained by renewed inflation concerns after Reserve Bank Governor Michele Bullock adopted a hawkish stance in parliamentary testimony last week, keeping the prospect of further rate hikes on the table. In a separate development, Australia’s four major banks now anticipate that the central bank will raise interest rates next week, pointing to energy-driven inflationary pressures.
Notable movers included Wisetech Global (up 3.8%), Xero Ltd. (up 3.6%), Lynas Rare Earths (up 2.0%), and REA Group (up 1.6%). Investors are now turning their attention to the flash September PMI and August labor market data for additional guidance on the policy outlook.
