On Wednesday, Australia’s benchmark stock index defied widespread sectoral declines to close in positive territory, driven almost entirely by a sharp rally in the mining sector fueled by surging global gold and copper prices. The ASX 200 added 29.70 points, or 0.34%, to settle at 8823.00, while the broader All Ordinaries index gained 28 points, or 0.31%, to close at 9004.90. Against the U.S. dollar, the Australian dollar edged lower to 69.93 U.S. cents by market close.
Of the 11 major market sectors tracked on the ASX, only three finished the trading day in positive territory, with materials and energy leading the gains while eight other sectors recorded losses. Mining giants dominated the rally: BHP Group climbed more than 2.5% to close at $59.76, and Rio Tinto matched that gain to finish at $161.98. The upward movement for major copper miners came as September Comex copper jumped 3.3% in overnight trading before stabilizing at $6.52 per pound.
Precious metals also extended their recent upward trend, with gold pushing past the key $4,100 per ounce threshold to hit $4,128 U.S. ($5,901 Australian) per ounce. The strong gold price lifted all major domestic gold producers: Northern Star Resources rose 3.51% to $20.35, Evolution Mining gained 4.32% to $11.36, and Genesis Minerals advanced 5.90% to $6.10.
Justin Lin, investment strategist at Global X, noted that the materials sector carried the entire market’s upward momentum on Wednesday. “Gold majors are also outperforming, contributing to that materials strength,” Lin explained. “Gold appears to have successfully defended the $4,000 U.S. per ounce level and its rebound today beyond $4,100 U.S., despite higher crude prices and bond yields, suggests selling pressure is beginning to fade.”
The energy sector also contributed to the index’s gains, as Brent Crude prices climbed back above $92 U.S. ($132 Australian) per barrel. The oil price increase came amid escalating geopolitical tensions in the Middle East, after former U.S. President Donald Trump threatened broader military strikes on Iran. U.S. Central Command confirmed the strikes are intended to reduce Iran’s ability to disrupt commercial shipping in the strategic Strait of Hormuz. Rising oil prices lifted Australian energy giants, with Woodside Energy adding 1.28% to close at $31.65 and Santos gaining 1.03% to settle at $7.85.
Broad-based declines across most sectors offset much of the mining and energy rally, with the healthcare sector recording the sharpest drop, falling 1.93% overall. The selloff in healthcare was triggered by Trump’s threats to impose new tariffs on pharmaceutical imports. Major domestic healthcare stocks fell sharply: CSL dropped 2.83% to $117.94, Pro Medicus slumped 3.66% to $173.45, and ResMed edged 0.68% lower to $27.75.
In individual company news, several notable movements made waves outside of sectorwide trends. Lynas Rare Earths fell 3.63% to $15.38 despite reporting its strongest quarterly revenue in four years, driven by rising commodity prices and growing global demand for non-Chinese rare earth supply chains. Diversified conglomerate Wesfarmers dropped 2.11% to $89.90 after announcing a major expansion of its joint venture Mt Holland lithium project in Western Australia alongside Chilean partner Sociedad Química y Minera de Chile (SQM). Both firms will invest between $645 million and $715 million in the expansion, which is scheduled to begin construction in 2027.
Logistics technology firm WiseTech Global slipped 0.47% to $33.84 following its announcement of an acquisition of an AI-powered supply chain technology company to expand its VerifyWise governance platform. Casino operator SkyCore Entertainment rallied 12.24% to $0.55 after confirming it had signed a non-binding preliminary agreement to sell its Grand Hotel property. Candle and home fragrance retailer Dusk plummeted 8.61% to $0.69 after Australia’s competition regulator, the ACCC, launched federal court proceedings against one of its subsidiaries. The regulator alleges 25 of the company’s products sold in 2023 and 2024 include button batteries that do not meet mandatory national safety and labeling standards. Dusk responded in a statement that all of its products have passed required regulatory testing.