What is the current status of the Australian stock market?

The Australian stock market, as represented by the S&P/ASX 200 index, has risen 0.9% on August 5, 2025, trading near its record high set on July 18, 2025.

How have the mining and banking sectors in Australia performed?

The mining sector, led by companies like Rio Tinto and BHP, has gained 1.4% due to strengthening iron ore prices. The banking sector has also advanced 0.8%, with the "Big Four" banks gaining between 0.4% and 1.2%.

What is the outlook for US interest rates?

Investors globally are anticipating a US Federal Reserve interest rate cut in September 2025 following last week's weaker-than-expected employment data, with the CME Fedwatch tool showing a more than 94% probability of a rate cut.

Home / Business and Economy / Australian Stocks Surge, Fueled by Mining and Banking Gains

Australian Stocks Surge, Fueled by Mining and Banking Gains

5 Aug

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Summary

Australian shares rise 0.9%, nearing record high
Miners and banks lead the gains, boosted by iron ore prices
Investors bet on US rate cut in September after weak jobs data

Australian Stocks Surge, Fueled by Mining and Banking Gains

On August 5, 2025, Australian shares experienced a significant surge, climbing 0.9% to 8,741.60 and trading near their record high of 8,776.40 set on July 18, 2025. The gains were primarily driven by strong performances in the mining and banking sectors.

The mining industry, led by major players like Rio Tinto and BHP, gained 1.4% after iron ore prices strengthened overnight, buoyed by firm near-term demand from top consumer China. Gold stocks also jumped 2.2%, with Northern Star Resources rising 3.1%. The banking sector advanced 0.8%, with the "Big Four" banks gaining between 0.4% and 1.2%.

Globally, investors have firmed their bets for a US Federal Reserve interest rate cut in September following last week's weaker-than-expected employment data. The US nonfarm payrolls count for the previous two months was also revised down, raising concerns about slowing growth in the world's largest economy. The CME Fedwatch tool is currently showing a more than 94% probability of a rate cut in September.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 12,764.82, ahead of the release of the second-quarter jobs report on Wednesday. Investors have also priced in an 80% chance of a 25-basis-point rate cut by the Reserve Bank of New Zealand on August 20, 2025.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.