ASX continues upswing as Iran mulls US peace proposal
The Australian stock market is heading for a second consecutive session of gains as oil prices retreated on hopes of a possible peace deal between the US and Iran.
The S&P/ASX200 rose 75 points to 8,868.6 points at midday Thursday, up 0.85 percent. More broadly, the All Ordinaries rose 80.6 points, or 0.89 percent, to 9,096.7 points.
The continued rise follows a positive session on Wall Street following reports that the US has offered Iran a memorandum of understanding to end the war.
“Markets have reacted positively to President (Donald) Trump signaling progress towards a potential deal with Iran, including the phased reopening of the Strait of Hormuz,” Westpac economist Luka Belobrajdic said.
Energy stocks fell 3.1 percent as Brent crude fell to $101.50 per barrel. The decline of more than 10 percent since Tuesday has put pressure on oil and gas giants Woodside and Santos.
While coal miners were also selling, uranium stocks remained in a difficult situation after days of selling pressure.
Iron ore futures rose above US$111 for the first time since October 2024, while base materials provided the bulk of the forward momentum, following a strong lead from BHP, Rio Tinto and Fortescue, up 3 per cent.
Gold rose to about US$4,717 ($6,509) an ounce, buoying local miners and pushing the All Ordinaries gold subindex above three per cent.
Financials improved for the second consecutive session, but NAB shares fell 1.6 percent to $39.40 after ex-dividend, capping the rise.
NAB also announced it would appoint Mr Dooley to help Connie Sokaris succeed Shaun Dooley as chief risk officer in August and see him through the year before retiring from the bank.
All four of its major rivals traded higher, along with investment giant Macquarie, which is due to report interim results on Friday.
The consumer discretionary sector rose modestly, with Aristocrat falling and Light & Wonder’s earnings update leading to a 7.8 percent sell-off, despite a 2.1 percent gain for segment giant Wesfarmers.
Tabcorp was also heavy; It fell by more than a fifth after AUSTRAC launched an investigation into “serious concerns” about the group’s compliance with money laundering and terrorist financing obligations.
ASX-listed technology shares gained 0.8 per cent despite weakness in industry heavyweights Xero and WiseTech, while data center group NextDC gained 4.3 per cent.
ARN Media shares fell 1.9 per cent to 26 cents after a trading update revealed the advertising boycott of the Kyle and Jackie O radio show had cost it $26.4 million, according to company news.
The Australian dollar bought 72.47 US cents, up slightly from 72.30 US cents at 17:00 on Wednesday, driven by increased risk perception and a weak dollar.
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