Australian stocks recover as banks, miners advance on improved risk sentiment
06/05/2026 07:55
ASX200 snaps two straight sessions of losses Banks up 2.4%, miners up 2.6% Energy stocks down 2.1% Updates to close By Sruthi Narasimha Chari May 6 (Reuters) - Australian shares snapped a two-session slide on Wednesday, lifted by banks and miners, as signs of progress towards a U.S.-Iran deal improved risk appetite. The S&P/ASX 200 index .AXJO ended 1.3% higher at 8,793.60, notching its highest closing since early April. The benchmark ended 0.2% lower on Tuesday. U.S. President Donald Trump flagged "great progress" toward a final deal with Tehran and signalled a brief pause in operations escorting ships through the Strait of Hormuz, which Iran has blockaded since late February. Financial stocks .AXFJ rose 2.4%, a day after the Reserve Bank of Australia hiked its benchmark rate for a third time this year to 4.35%. The so-called "Big Four" banks gained between 2.8% and 3.5%. Prashant Newnaha, senior rates strategist at TD Securities, said the RBA did not signal further tightening, but markets still expect another increase, likely at the August meeting, to bring inflation sustainably back to target. Swaps now imply a more than 50% chance of a 25-basis-point rate hike at that meeting. 0#AUDIRPR Miners .AXMM rose 2.6% on Wednesday, supported by firm metal prices and iron ore futures as Chinese steel mills resumed production after the May Day holiday with expectations of a seasonal demand pick-up. IRONORE/ Mining majors BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX gained between 2.3% and 3.2%. Capping gains, energy stocks .AXEJ slumped 2.1% as oil prices slipped for a second day on hopes of a potential Iran deal. O/R Among individual stocks, data centre operator DigiCo Infrastructure DGT.AX jumped 25% after announcing a $750 million sale of its Chicago data centre. In New Zealand, the benchmark S&P/NZX 50 index .NZ50 closed 0.8% higher at 13,145.19. Reserve Bank of New Zealand Governor Anna Breman said that the country's financial system remains resilient despite a worsening global risk outlook. (Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Harikrishnan Nair) ((Sruthinarasimha.chari@thomsonreuters.com))