ASX Stocks Extend Winning Run as Tech, Healthcare and Financials Gain Ground

Highlights:

• The ASX advanced for a third straight session, led by strength in technology, healthcare, and financial sectors

• Materials sector declined amid soft performance from mining heavyweights despite broader market strength

• Uplift in tech stocks followed a strong performance on Wall Street, while oil prices supported energy shares

The ASX Stocks market started the week on a positive note, maintaining momentum for a third consecutive session. Gains across technology and healthcare names contributed to the uplift, with energy also advancing due to global oil price movements. The broader sentiment was aided by a solid finish on Wall Street, with particular strength from US-based technology companies influencing domestic tech valuations.

Healthcare shares saw notable buying interest, further lifting the index. Support from these sectors helped offset softness in the materials space, which ended the session in the red despite optimism surrounding global macroeconomic developments.

Tech Sector Lifted by Global Momentum

Domestic tech names tracked strength seen in US markets. Software firm Xero posted gains, while TechnologyOne advanced through the session. WiseTech Global traded flat, consolidating earlier gains from the previous week. Momentum across these names followed upbeat quarterly reports from global peers.

Real estate tech-related firm Domain reported a slight rise after extending exclusivity discussions with a global player interested in a potential acquisition. These updates added to overall market interest in the broader technology space, with several firms holding ground or adding modest gains.

Financials Trade Mixed as Banks See Diverging Moves

The major banks recorded mixed results across the board. Shares in NAB rose during the session, with ANZ and Westpac also closing in the green. Commonwealth Bank underperformed, posting a decline and weighing on broader sentiment within the sector.

The financial sector contributed positively to the index’s movement, buoyed by optimism around interest rate settings and upcoming economic data. The movements followed investor positioning ahead of the upcoming inflation report.

Materials and Miners Under Pressure

Mining companies ended the day lower, breaking from the wider market’s positive tone. Major diversified miner BHP declined, dragging the materials sector down. Gold producers such as Fortescue and Newmont also edged lower, despite broader resilience in the commodity space.

Softness in this group was notable even as other segments outperformed. The sector faced headwinds despite discussion around additional stimulus measures aimed at boosting demand in key export destinations.

Consumer and Industrial Names Show Divergence

Packaging group Amcor advanced slightly, while construction materials firm James Hardie closed higher after reaffirming a key strategic decision related to a large acquisition. On the consumer side, travel agency Flight Centre saw an initial drop but reversed losses by session end. The company announced a share buy-back initiative while revising forward expectations due to challenging overseas trading conditions.

Elsewhere, logistics company Brambles saw a pronounced decline after adjusting its outlook, attributing the move to global demand softness. Biotech firm Telix Pharmaceuticals also slumped after disclosing regulatory delays for a key imaging product in the United States.

Upcoming Economic Events in Focus

Attention now shifts to a significant domestic inflation update scheduled midweek. Market watchers await confirmation of whether the inflation reading remains within the central bank's desired range. Interest rate decisions remain data-dependent, with policy developments anticipated in the near term.

In global markets, developments around tariff discussions and policy statements from key figures contributed to fluctuations. Movements in large-cap US equities and currencies reflected these shifts, with ongoing debates around trade policy continuing to shape sentiment.

The broader global outlook showed pockets of resilience in equity markets, driven primarily by large technology firms. However, concerns remain in the background about the trajectory of global economic activity amid ongoing trade policy discussions.