Australian shares inch higher as dovish Fed spurs risk-taking; miners lead

Aug 25, 2025, 14:14 GMT+7
Key points:

• ASX200 trims gains after scaling record level
• Miners up over 2.8%
• BHP shares log highest level since November 2024

(Reuters) - Australian shares closed slightly higher on Monday, trimming earlier gains from a record-high level, as rising U.S. rate cut expectations boosted risk appetite across sectors, while stronger iron ore prices supported commodity stocks.
The S&P/ASX 200 indexclosed 0.1% higher at 8,972.4 points, after hitting a record high of 9,054.5 points earlier in the session.
The mining index jumped 2.8%. Iron ore prices advanced after Rio Tintosuspended activity at its Simandou project in Guinea following an incident, raising fears of a potential delay in production at the mine.
Nevertheless, Rio Tinto shares climbed 2.4%, tracking higher iron ore prices. BHPgained 2.7%, logging its highest level since early November last year.
Investor sentiment was upbeat after U.S. Federal Reserve Chair Jerome Powell's address at the Jackson Hole symposium on Friday hinted at a possible interest rate cut in September.
Expectations of U.S. rate cuts are seen as a positive for Australia, whose central bank often follows the Fed.
The speech "signaled greater macroeconomic stability and indicated that the Fed could consider cutting rates again -- something investors have long awaited," said Grady Wulff, senior market analyst at Bell Direct.
Other commodity stocks, linked to energyand gold, closed 1.1% and 2.8% higher, respectively, rallying on the upbeat sentiment.
The heavyweight financial indexbucked the trend to fall 1.2% after investors cashed in profits following seven consecutive sessions of gains.
"We are seeing a risk-on attitude during reporting season and with the outlook for a stronger fiscal 2026, investors are shifting portfolio allocations from the safety of the over-valued financials and into the under-valued small-cap to mid-cap space," Wulff added.
New Zealand's benchmark indexclosed 0.3% higher at 13,079.5 points. Earlier in the day, the country's central bank proposed easing capital requirements for lenders.
($1 = 1.5423 Australian dollars)

Sumber : Reuters