Australian shares surged past the key 9,000 mark for the first time on Thursday, lifted by financials and a string of upbeat corporate earnings.
The S&P/ASX 200 index gained 1.1% to 9,019.10, marking an all-time high and closing record.
The benchmark has risen in seven of the past 15 sessions this month, extending a rally that has been underpinned by strong company results, easing inflation, and supportive monetary policy.
The latest gains follow a 0.3% rise on Wednesday and cap a run in which the index advanced in seven of the last eight sessions, its strongest performance since 2007.
Financials drive the rally; healthcare, miners join in
Financial stocks led the charge, climbing for a sixth straight session to reach a record closing high.
Commonwealth Bank of Australia rose 0.8%, while peers also advanced as investors rotated into banks from other large-cap names such as CSL and James Hardie.
Market participants said the move reflected a preference for the sector’s safe-haven qualities rather than a fundamental re-rating of earnings.
Healthcare also added to the benchmark, with biotech major CSL bouncing back 2.4% after a two-day selloff wiped nearly A$25 billion off its value.
Miners joined the rally as iron ore prices strengthened, with BHP and Rio Tinto up 0.7% and 1%, respectively.
Brambles leads corporate winners
The day’s standout performer was Brambles, which soared 11.7% to an all-time high after reporting a strong profit rise and unveiling a share buyback.
Gains were also seen in Woolworths, Transurban and Macquarie, which rose between 2.2% and 2.6%.
The broader lift was supported by an ongoing earnings season that has largely met or exceeded expectations, helping to offset concerns about valuations.
Australian economy shows signs of resilience
Data released Thursday pointed to resilience in Australia’s private sector.
The composite index of services and manufacturing activity climbed to 54.9 in August, its highest since April 2022, driven by strong demand and an expanding customer base.
At the same time, consumer inflation expectations fell for a second month to 3.9% in August, the lowest since March, raising hopes that price pressures are easing.
The trend has bolstered sentiment that the Reserve Bank of Australia will continue with policy easing after its recent rate cut.
Analysts call rally a ‘bellringing moment’
Market analysts described the 9,000-point milestone as a symbolic breakthrough for Australian equities.
“The market seems to be happy to pay more for earnings than it has in the past. This breach of the 9,000 threshold is a continuation of that,” said Morningstar strategist Lochlan Halloway.
IG analyst Tony Sycamore called the rise a “bellringing moment,” crediting a strong reporting season and supportive policy for offsetting investor concerns about U.S. tariffs.
Shane Oliver, chief economist at AMP, said global conditions were proving favourable for local equities.
“The worst-case trade war scenarios now look less likely, global economic data remains mostly okay, profits are coming in stronger than expected globally and will likely pick up in Australia,” he said.
Regional momentum builds as rally crosses over to New Zealand
Australia’s rally was echoed across the Tasman Sea, where New Zealand’s S&P/NZX 50 index climbed 0.9% to 13,194.07, its second straight day of gains.
Both markets are benefiting from a shift toward defensive sectors as investors prioritise stability over rapid growth.
Analysts say continued rate cuts or positive corporate signals could see the rally broaden further into other parts of the market.
For now, the breach of the 9,000 mark underscores a broader global trend of investors gravitating toward reliability, with central banks’ softer policy stances steering money into banks and major resource firms.
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