Australian shares post best session in nearly three weeks
Mining index, BHP hit record high
Australian shares reached their best performance in nearly three weeks on Monday, August 24, as heavyweight miners surged on firmer iron ore prices, driving BHP Group to set a new record high. The benchmark S&P/ASX 200 index climbed 0.5 percent to 9,103.10 points, marking its biggest gain since August 5. The index peaked at a record level earlier in the session, surpassing its peak on August 14.
Miners led the rally, climbing as much as 3 percent to a record high. However, the relative strength index (RSI) of the sub-index exceeded 70, indicating overbought conditions. Tim Waterer, chief market analyst at KCM Trade, noted that the Australian index is primarily driven by strong demand for the resources sector, particularly copper, which is being supported by structural demand for electrification and AI-related infrastructure.
BHP ended the day 3 percent higher at A$67.12, a record closing level, following strong annual earnings. The rally was bolstered by higher iron ore prices. Gold stocks also advanced 1.7 percent as a weaker dollar boosted bullion prices, with Evolution Mining and Northern Star Resources gaining 2.5 percent and 1.8 percent, respectively.
The financial sector, however, lagged, falling 0.7 percent to its lowest close since June 12, with all the "big four" banks dropping between 0.3 percent and 0.7 percent. Technology and healthcare stocks registered gains of 1 percent and 0.6 percent, respectively. Market participants are also closely watching Wednesday's monthly inflation reading for further clues on the Reserve Bank of Australia's next policy move.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index fell 0.7 percent to 13,881.88 points, marking its biggest drop since August 17.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
