(SYDNEY) Australian shares logged a record close on Tuesday (Jun 10), with banks and energy stocks leading the charge, as renewed optimism over US-China trade negotiations lifted investor confidence and fuelled a broad market rally.
The S&P/ASX 200 index rose 0.8 per cent to 8,587.20 points, a closing high. The benchmark was closed on Monday for a public holiday.
Trade talks between the world’s two largest economies have stretched into a second day in London as officials work to ease tensions that have spiralled from tit-for-tat tariffs to rare earth curbs, posing a threat to global supply chains.
Local investors are closely watching the talks, hopeful that a positive outcome would spur economic activity in Australia’s largest export market, China, and brighten prospects domestically.
Heavyweight financials led gains on the Sydney exchange, rising 1.1 per cent to a record peak. The country’s “Big Four” banks gained between 0.9 per cent and 1.5 per cent.
“Despite some certainty on the horizon with trade talks progressing, investors continue bolstering their portfolio with the safety of Aussie banks, which is a likely driver of the financials sector rally today,” said Grady Wulff, a market analyst at Bell Direct.
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Energy stocks tracked oil prices higher to support the rally, gaining 0.9 per cent to their highest since March 5, while investors eyed US-China talks for signs of easing trade tensions and stronger fuel demand.
Sector major Woodside Energy added 0.7 per cent, while smaller rival Santos gained more than 1 per cent.
Separately, Uranium and lithium miners surged, with Boss Energy and Deep Yellow gaining about 2 per cent each and Pilbara Minerals and Mineral Resources both jumping over 5 per cent.
Uranium stocks are still riding the momentum sparked by Meta’s recent deal to power its AI operations with nuclear energy, while lithium miners rallied on rising commodity prices, Wulff said.
New Zealand’s benchmark S&P/NZX 50 index rose 0.2 per cent to finish at 12,564.42 points. REUTERS
