Australian Shares Climb Amid Global Economic Uncertainties

The Australian share market edged higher on Monday, despite lingering global economic concerns. The S&P/ASX200 index rose 25.1 points, or 0.29 percent, to 8707.2 by midday, while the All Ordinaries gained 25.9 points, or 0.26 percent, to 8877.9. This follows a volatile week marked by Australia's fourth interest rate hike in 2026 and a significant stock market sell-off on Thursday.

Capital.com senior market analyst Kyle Rodda noted that geopolitical risks in the Middle East remain a key focus, with crude oil prices fluctuating amid reports of US military buildup and disrupted crude flow from the Gulf. Brent crude prices eased slightly after OPEC+ maintained November output targets and G7 countries planned to release 100 million barrels of fuel reserves.

Energy and basic materials stocks performed well, with local coal producers leading gains. Santos shares jumped 1.1 percent to $8.64, and Woodside inched up 0.2 percent. Copper prices rebounded, boosting BHP, Rio Tinto, and South32. However, gold producers saw mixed results as gold prices hovered near $4,153 an ounce. Consumer discretionary stocks were the weakest segment, down 0.7 percent.

In company news, CSL announced a deal with Alentis Therapeutics to co-develop a treatment for rare kidney and liver diseases. Firmus, an Australian AI infrastructure player, is considering a dual listing on the Nasdaq ahead of its expected October 23 domestic float, targeting a $43.7 billion valuation. Fisher and Paykel Healthcare's shares improved after plans to sell part of its Drury site were revealed.

AMP chief economist Shane Oliver cautioned that global and Australian markets face downside risks from geopolitical tensions, interest rates, inflation, and AI uncertainty. However, he expects decent returns over the next 12 months due to continuing economic growth and strong global profit growth. The Australian dollar rose to 69.54 US cents.