The Australian share market rallied to a fresh record on Friday, logging its strongest daily gain in over three months as rising expectations of interest rate cuts fuelled broad-based buying.
The benchmark S&P/ASX 200 Index jumped 118.2 points or 1.4% to 8,757.2, setting a new record closing high and posting its best session since 10 April.
For the week, the index added 2.1%, its largest weekly gain since late April.
All 11 sectors of the index advanced, led by health care stocks, as Mesoblast soared 34.6% after announcing strong uptake of its cell therapy Ryoncil, which has been commercially available since March, while CSL climbed 3.7%.
Mining giant BHP gained 3.3% after reporting record copper and iron ore production for FY25, though the company’s softer FY26 outlook capped broader enthusiasm.
Other major miners gained, with Rio Tinto up 1.8%, Fortescue Metals lifting 0.5% and Champion Iron advancing 3.5%.
Technology shares also finished higher, with Wisetech Global up 1.2%, TechnologyOne adding 1.6%, and Xero lifting 1%.
Financial stocks added to the upbeat tone, with Commonwealth Bank up 0.9%, Westpac adding 1.8%, NAB gaining 1.3%, and ANZ closing 1.2% higher.
Among individual companies, Fletcher Building rose 3% despite flagging that volumes had steadily declined across most categories since their 2022 peak. CEO Andrew Reding warned that a meaningful recovery is unlikely before 2027.
Atlas Arteria slid 0.4% after the Virginia Supreme Court rejected the toll road operator’s appeal to raise fares by up to 40% on its Dulles Greenway near Washington.
Virgin Australia rose 1.9% after UBS initiated coverage with a “buy” recommendation and set a target price of $3.90.
On the bond markets, 10-year yields were up 0.2% to 4.343%, and 2-year rates eased 0.1% to 3.333%.
