The Australian sharemarket rallied on Monday as investors welcomed a pause in hostilities between the United States and Iran, easing concerns over potential disruptions to Middle East energy supplies and supporting a broad-based recovery across sectors.
The S&P/ASX 200 Index climbed 121.7 points, or 1.39%, to 8,894.0, with 10 of the benchmark's 11 sectors finishing higher.
Technology stocks led the gains, with investors returning to growth names after recent volatility across global markets. Xero advanced 6%, TechnologyOne gained 5.8%, WiseTech Global rose 7%, and NextDC added 2.1%.
Materials stocks also strengthened as improving risk sentiment lifted mining shares. BHP Group gained 2.1%, Rio Tinto climbed 2.2%, and Fortescue Metals Group advanced 1.2%.
The Energy sector was the only major drag on the market as falling crude oil prices prompted investors to lock in profits following recent gains driven by Middle East supply concerns.
Santos fell 3.6%, Woodside Energy declined 2.9%, Beach Energy dropped 3.9%, and Viva Energy slipped 2.4%.
Among individual movers, Myer Holdings dropped 12% after the retailer warned that a sharp slowdown in consumer spending late in the financial year forced increased discounting activity, putting pressure on margins despite modest sales growth.
On the bond markets, Australian government yields eased, with the 10-year yield falling 0.9% to 5.00% and the two-year yield declining 0.8% to 4.64%.
