June 30 (Reuters) – Australian shares were headed for their sixth straight half-yearly rise on Monday, driven by easing geopolitical and trade tensions and hopes of rate cuts by the local central bank.
The S&P/ASX 200 index rose 0.2% to 8,530.60 points by 0023 GMT. The benchmark was on track to rise 4.5% for the first half of 2025.
Domestic equities recouped from a trough hit in early April as easing U.S.-China trade tensions and an Israel-Iran ceasefire boosted risk appetite.
Gold stocks were poised to soar more than 35% in the first six months of 2025, in what could be its best half-year since 2016’s first half, as geopolitical tensions and tariff worries drove safe-haven demand.
However, the sub-index fell 1% on the day as bullion prices eased.
Energy stocks, which fell 0.7%, were highly volatile in the half-year as the Israel-Iran conflict fuelled oil supply concerns. The sub-index was largely unchanged for the half year.
Meanwhile, miners retreated 1.3% after surging more than 2% on Friday.
Further leading the benchmark higher were prospects of rate cuts by the Reserve Bank of Australia (RBA) as domestic inflation eased.
Swaps implied a 92% probability that the RBA would cut rates by a quarter-point at its upcoming policy meeting on July 8.
Local investors awaited the retail sales data for May due on Wednesday for further clues into rate cuts.
Financials rose 0.7%, with the “Big Four” gaining between 0.3% and 0.8%. The sub-index was on track to jump more than 10% for the half-year.
In company news, Star Entertainment said it received a notice from Hong Kong’s Far East Consortium International and Chow Tai Fook Enterprises to terminate the deal to sell its 50% stake in its Queen’s Wharf project in Brisbane. However, shares rose 1.7%.
New Zealand’s benchmark S&P/NZX 50 index was largely unchanged at 12,580.56 and was set for its worst half-year since the first half of 2022. (Reporting by John Biju in Bengaluru; Editing by Sumana Nandy)
