Kalkine : Australia equity market climbs higher as large caps lift ASX

Highlights

• S&P/ASX200 and All Ordinaries rose on easing trade tensions

• Miners and energy stocks led sector gains, while gold declined

• Zip Co surged on guidance update; Qantas declined on restructuring 

The Australia equity market surged to a new peak, led by gains in large-cap resource and energy companies, as key indexes such as the S&P/ASX200 and the All Ordinaries edged higher during the morning session. The movement followed easing tensions between the United States and China after progress in export negotiations.

Resources and Materials Sector Gains Ground

Mining stocks moved higher in early trading, supported by developments in global trade discussions. Fortescue Metals Group (ASX:FMG) and BHP Group (ASX:BHP) both recorded gains, while Rio Tinto (ASX:RIO) saw a modest uptick. The materials sector broadly advanced, reflecting market optimism tied to reduced export restrictions and tariff adjustments between major global economies.

Lynas Rare Earths (ASX:LYC), however, experienced a significant decline, as the in-principle agreement between global leaders affected outlooks in the rare earths segment. The drag on rare earth-focused companies emerged as market participants reacted to the trade resolution's implications on future demand dynamics.

Energy Sector Pushes Higher

Energy shares recorded firm upward movement, with Woodside Energy (ASX:WDS) seeing notable strength following recent developments in global crude pricing. As oil benchmarks retraced from recent highs, large energy players continued to benefit from the underlying momentum in commodity markets.

The broader sector's strength was reflected across other producers as well, supporting the gains in the main indexes through the mid-session.

Financials Trade Mixed on Valuation Restraint

Commonwealth Bank of Australia (ASX:CBA) achieved another record high during the session before slightly easing. With its market valuation continuing to expand, it led the financial sector's steady advance.

Other major banking institutions, including Westpac Banking Corporation (ASX:WBC), Australia and New Zealand Banking Group (ASX:ANZ), and National Australia Bank (ASX:NAB), displayed limited movement. While some traded higher, others remained flat as activity balanced between recent sector strength and cautious positioning around elevated valuations.

Technology Stocks Retreat Slightly

The technology sector stepped back slightly after recent gains. Despite this, select companies such as Megaport (ASX:MP1) and NextDC (ASX:NXT) continued to climb, supported by consistent interest in infrastructure-related digital services.

The sector's minor retreat was largely due to profit-taking following previous upward momentum. Broader sentiment within technology remained steady, as the shift toward data services and cloud connectivity retained underlying support.

Consumer and Aviation Updates

Zip Co (ASX:ZIP) led the market gainers after a revised outlook on forward activity, driven by stronger performance in overseas operations. The update lifted sentiment in the consumer finance space, offering short-term strength for the stock.

Meanwhile, Qantas Airways (ASX:QAN) moved lower after confirming the closure of Jetstar Asia, its regional operation based in Singapore. The airline announced plans to redeploy a portion of its aircraft to domestic and trans-Tasman routes, with adjustments following a strategic review of regional performance.

Among the eleven primary sectors, real estate also moved higher alongside resources and energy, indicating broad participation in the market's upward trend. IT and utilities were the only sectors trading in negative territory by midday, while the remaining areas showed modest to firm gains.

Precious metal producers lagged, as gold prices consolidated near recent levels. Market response reflected cautious sentiment in the segment, with gold-focused companies underperforming broader materials peers.

The S&P/ASX200 index continued its upward trajectory, extending gains from the previous day and setting fresh highs. The All Ordinaries index also remained close to its earlier peak, tracking strong activity across large caps and resource-linked names.