Australian shares closed higher on Tuesday, supported by renewed optimism over potential United States-Iran negotiations, while easing oil prices helped underpin broader market sentiment.
The S&P/ASX 200 Index rose 44.8 points, or 0.5%, to 8,970.8, with six of the 11 sectors finishing in positive territory.
Technology stocks led the advance, with Xero climbing 3.9%, WiseTech Global gaining 3.8%, TechnologyOne rising 2.9%, and NextDC jumping 4.3%.
The materials sector also performed strongly, buoyed by gains in major miners. BHP surged 3.2% after a Bloomberg report indicated that China’s state-backed iron ore buyer had allowed several domestic steel mills to resume purchases of BHP cargoes following a prolonged commercial dispute.
Rio Tinto added 1.3%, while Fortescue Metals gained 1.6%.
Real estate investment trusts posted solid gains, with Goodman Group rising 1.6%, Charter Hall adding 1.7%, and Stockland advancing 2.4%.
Financial stocks delivered a mixed performance. Commonwealth Bank edged up 0.2%, while National Australia Bank fell 0.6% and ANZ declined 1%. Westpac dropped 2.6% after warning that interest rate volatility linked to the Middle East conflict had weighed on income in its markets division and prompted an increase in credit provisions.
Energy stocks were also mixed as crude oil prices pulled back from recent highs. Santos fell 0.9%, and Woodside Energy slipped 0.6%, while Viva Energy gained 1.9% and Beach Energy rose 0.4%.
In company-specific news, Qantas shares declined 0.3% after the airline announced a reduction in domestic flight capacity in response to rising fuel costs.
Cleanaway Waste Management dropped 2.6% after downgrading its 2025–26 earnings guidance by $20 million, citing increased fuel and logistics costs driven by ongoing Middle East tensions.
On the bond markets, yields moved lower, with the 10-year bond yield falling 0.6% to 4.953% and the 2-year yield declining 1% to 4.648%.
