Australian equities recovered from early losses to finish higher on Tuesday, supported by reports that Donald Trump may be willing to end the Iran conflict even if the Strait of Hormuz remains largely closed.
The S&P/ASX 200 rose 20.8 points or 0.3% to close at 8,481.8, reversing an intraday decline of 0.5%, with eight of the 11 sectors finishing in positive territory.
Sentiment improved after a report indicated Trump had told aides he could conclude the military campaign against Iran without immediately reopening the Strait of Hormuz, potentially deferring efforts to restore shipping flows.
The Information Technology sector led gains, with Xero up 6.6%, WiseTech Global adding 4.1%, and TechnologyOne advancing 1.4%.
Real estate investment trusts also moved higher, with Goodman Group adding 1.8%, Charter Hall Group lifting 0.9%, Mirvac Group up 0.3%, and Stockland closing 0.5% higher.
Financials were mostly higher; Westpac lifted 1%, National Australia Bank added 0.5%, and ANZ Group edged 0.2% higher, while Commonwealth Bank lost 0.6%.
The Materials sector was supported by rising gold prices, following comments from Jerome Powell that long-term U.S. inflation expectations remain well anchored despite ongoing geopolitical tensions.
Northern Star Resources lifted 4.4%, Evolution Mining added 0.8% and Newmont Corporation advanced 2.2%.
Major diversified miners delivered mixed results, with BHP Group slipping 0.1%, Rio Tinto gaining 0.4%, and Fortescue Metals declining 1.2%.
The Energy sector finished lower, although it remains on track for a gain of 18.5% for the month.
Santos fell 1.1%, Woodside Energy dipped 0.5%, Ampol lost 1% and Beach Energy closed 0.4% lower.
Among individual stocks, West African Resources climbed 4.9% after forecasting record 2026 gold production of between 430,000 and 490,000 ounces at all-in sustaining costs below US$1,900 per ounce.
ARN Media fell sharply, dropping 10.3% after legal proceedings were initiated by radio host Jackie “O” Henderson, seeking at least A$82.25 million in compensation, along with penalties, interest and costs.
Electro Optic Systems closed 0.5% lower despite securing two new U.S. contracts worth a combined US$12 million for its remote weapon systems.
On the bond markets, yields declined, with the 10-year bond yield falling 0.9% to 4.982% and the two-year yield easing 0.4% to 4.664%.
