The Australian stock market closed higher on Thursday amid rising expectations of further policy easing in the United States and China.
The S&P/ASX 200 index rose 35.6 points, or 0.4%, to 8,223, approaching the September 30 record of 8,269.8 points.
Among sectors, materials lead the way as iron ore prices climbed 1.5% in Singapore to $US106.50.
Investors are anticipating potential economic stimulus announcements from China over the weekend, which could further boost market sentiment.
The standout performer was Arcadium Lithium, which surged 38.8% after Rio Tinto's $9.9 billion all-cash takeover bid for the company. Rio Tinto shares also gained 1.4% following the announcement.
Arcadium Lithium's Sal de Vida (in the Catamarca Province of Argentina) is a globally competitive project with high-quality brine chemistry that is within 10 kilometres of its operations at Salar del Hombre Muerto.
BHP advanced 1.4% after Norway’s sovereign wealth fund, Norges Bank, removed the mining giant from its climate watch list, citing reduced coal use and production. Fortescue Metals also saw a sharp rise, climbing 4%.
The positive momentum from Rio’s takeover bid lifted the broader lithium mining sector, with Lake Resources, Sayona Mining, and Liontown Resources each gaining over 7%.
In the energy sector, Woodside increased by 0.7%, Beach Energy rose 1.6%, and Santos edged up 1%, as oil prices rebounded on concerns over potential supply disruptions due to Hurricane Milton.
On the bond markets, 10-year rates were at 4.232%, while 2-year rates were at 3.85%.