Australian shares rallied on Wednesday as a ceasefire agreement between the United States and Iran lifted investor sentiment and eased concerns over global energy disruptions.
The S&P/ASX 200 surged 223.0 points, or 2.6%, to close at 8,951.8, with eight of the 11 sectors finishing higher.
The rebound followed news that Donald Trump had agreed to a two-week ceasefire with Iran, a move aimed at reopening the Strait of Hormuz and allowing the safe passage of oil, gas and commercial vessels.
Global markets responded swiftly, with Asian equities and U.S. futures surging. The ceasefire came just hours after Trump warned he would destroy the “whole civilisation” if Iran blocked shipping through the key waterway.
In commodities, Brent crude tumbled 13.6% to US$94.45 per barrel, while gold climbed 2.3% to $4,812.01 per ounce.
On the ASX, interest rate-sensitive technology names led the gains. WiseTech Global jumped 10.7%, while Xero rose 6.5% and TechnologyOne gained 6.8%.
Real estate investment trusts also advanced, with Goodman Group climbing 7.1% after announcing a 50-50 joint venture with DataBank to develop a 32-megawatt data centre in Los Angeles.
Charter Hall Group gained 4%, Mirvac Group lifted 2.3%, and Stockland added 1.5%.
Gold miners rallied in line with higher bullion prices. Newmont Corporation rose 4.6%, while Greatland Resources surged 14% after producing 82,723 ounces of gold in the March quarter.
Energy stocks were the notable laggards as oil prices retreated sharply. Santos fell 5% despite announcing that it is expecting first oil at its Pikka phase 1 site in the coming weeks.
Woodside Energy tanked 10.5%, Viva Energy lost 8.3%, and Beach Energy fell 7.3%.
In corporate developments, DroneShield slumped 13.5% after chief executive Oleg Vornik resigned, while chairman Peter James announced plans to retire next month.
On the bond markets, yields moved lower, with the 10-year and two-year rates both falling 1.7% to 4.862% and 4.583%, respectively.
