After six consecutive days of declines, Australia’s primary stock market reversed course on Thursday to close in positive territory, even as escalating geopolitical friction between the United States and Iran sent oil prices climbing and raised global market uncertainty. U.S. President Donald Trump amplified tensions this week, warning Iran of what he called an “economic D-Day” and the “most crushing economic operation” ever enacted against the Middle Eastern nation, a escalation that rippled through global commodity and equity markets.
The benchmark S&P/ASX 200 closed Thursday up 30 points, or roughly 0.33%, at 9083.80, while the broader All Ordinaries index gained 43.3 points, or 0.47%, to hit 9298.50. Market analysts attributed the turnaround to a wave of stronger-than-expected corporate earnings results that offset investor jitters over geopolitical risk, alongside mixed domestic labor data that tempered expectations for imminent interest rate hikes. The Australian dollar held steady, ending the trading session flat at 71.22 U.S. cents.
Of the 11 major market sectors, five finished the day in positive territory while six closed with losses. Materials stocks led the rally, driven by surging commodity prices and safe-haven demand triggered by the U.S.-Iran standoff. Miners posted particularly strong gains, as growing geopolitical uncertainty and shifting U.S. Treasury policy stoked inflation expectations, boosting the appeal of gold as a long-term store of value.
Major diversified miners BHP and Rio Tinto climbed 3.2% to $65.75 and 1.81% to $173.04 respectively, but gold mining operators outperformed the broader materials sector. Northern Star Resources rose 6.21% to $23.94, Evolution Mining surged 10.16% to $15.07, and global gold giant Newmont gained 6.94% to $177.10. Even with a marginal 0.53% pullback, spot gold held near multi-week highs at $4493.89 on Thursday.
Billy Leung, investment strategist at Global X, linked the materials sector rally to growing investor unease over U.S. economic outlook following the U.S. Treasury Department’s announcement of expanded long-term bond purchases. “People are getting more angsty about the long-term outlook of the U.S.,” Leung explained. “Because of the U.S. Treasury action, it stoked inflation expectations, and that’s why gold was actually up. There was also an element that there is declining credibility with the U.S. which gives gold a stronger standing as a reliable store of value.”
Beyond materials, the technology sector notched a solid 2.5% gain, while the healthcare extended its recent upward streak to close higher. A handful of prominent tech firms posted double-digit gains: military technology provider Codan jumped 12.42% to $48.88, logistics tech firm WiseTech Global gained 9.12% to $34.19, and cloud accounting platform Xero rose 2.35% to $85.29.
The banking sector was the day’s biggest laggard, with all four of Australia’s major lenders closing down 1% or more. Commonwealth Bank of Australia led the losses, dropping 2.66% to $156.44, followed by Westpac at 1.8% down to $33.82, ANZ at 1.62% lower to $37.01, and National Australia Bank, the least affected of the group, down 1.26% to $38.43.
Domestic unemployment data also influenced market momentum on Thursday. Leung noted that a small uptick in jobless claims tempered investor fears of imminent interest rate increases from the Reserve Bank of Australia, opening space for risk-taking in high-growth sectors. He added that seasonal factors tied to school holidays likely distorted the latest employment reading, making a near-term policy shift less likely, a development that supported equities.
Corporate earnings season dominated individual stock movement, with several major companies posting outsized gains after releasing solid full-year results. Buy-now-pay-later fintech Zip saw its shares surge 18.22% to $3.05 after reporting annual revenue of $1.336 billion and a statutory net after-tax profit of $116.4 million, beating analyst expectations. Super Retail Group, the parent company of outdoor retailer BCF and sporting goods chain Rebel, rallied 15.05% to $14.45 after reporting group sales growth of 3.2% to $4.2 billion, even as normalized net after-tax profit slipped 2.8% to $226 million.
Not all earnings reports landed positively, however. International education services provider IDP Education plummeted 20.74% to $1.72 after its statutory net after-tax profit slumped 74% year-over-year to $13.3 million. Engineering and infrastructure firm Downer EDI also fell 10.34% to $6.68, despite reporting adjusted net profit that met prior guidance, as investors reacted to management’s softer near-term outlook for the remainder of the trading year.