ASX 200 Reaches Record Highs on External Factors

The Australian stock market has reached record highs, driven by several external factors. The ASX 200 index closed at 9,271.60 points on Thursday, marking a gain of 0.9% and its fourth consecutive session of gains.

Over the past month, the index has risen by more than 4%, but this surge is notable given that the whole financial year has delivered only a 6.1% return, below its average of 9.6%. This rapid gain has prompted strategists to sound cautious, as much of the annual work has been done in a short window.

Several forces have contributed to this increase. UBS strategist Richard Schellbach attributes it partly to Australian shares benefiting from global artificial intelligence names wobbling, causing Asian investors to rotate into the ASX for its lack of pure-play AI exposure. Geopolitics has also played a role, with US Treasury Secretary Scott Bessent's hint at an agreement with Iran to reopen the Strait of Hormuz leading to eased oil prices and bond yields.