ASX Rallies Led by Resources and Tech as Investor Optimism Returns

Key Highlights:

• S&P/ASX 200 jumps 0.93% to 7,717.3 as risk sentiment improves
• Materials and Health Care sectors rise 1.68% each, buoyed by gold and biotech gains
• Tech stocks outperform, with All Technology Index up 1.22%
• Neuren Pharmaceuticals and DroneShield among top gainers
   

Australia’s equity market posted a robust rebound on Monday, with the S&P/ASX 200 rising 0.93% to close at 7,717.3, led by strength in resource-heavy names and a resurgent tech sector. Broad-based buying saw 10 of 11 sectors finish in the green, as traders shrugged off global macro jitters and focused on earnings momentum and stabilising bond yields.

Resources Reignite ASX Optimism

The Materials sector led the charge, gaining 1.68% as investors rotated back into commodity stocks on the back of firm gold and copper prices. Gold edged higher to US$3,243.70/oz, providing a tailwind for miners such as Mineral Resources, which surged over 6%, and Coronado Global, up nearly 10%. The ASX All Ordinaries Gold Index also advanced 1.10%, supported by haven demand amid global trade volatility.

Energy stocks followed suit, climbing 0.60% despite slight declines in crude prices, with Brent slipping to US$64.46 a barrel. Horizon Oil rose 5.26%, reflecting renewed optimism in the sector’s earnings resilience.

Tech Bounces Back

The All Technology Index jumped 1.22%—its best session in weeks—mirroring Friday’s tech-led rally on Wall Street, where the Nasdaq gained 2.06%. Australian tech names benefited from upbeat sentiment, with Siteminder climbing 7.38% and Clarity Pharmaceuticals advancing nearly 7%. The rebound underscores investor appetite for growth stocks as inflation expectations moderate and volatility eases.

Healthcare Gets a Shot in the Arm

Healthcare stocks also had a standout session, matching Materials with a 1.68% sector gain. Neuren Pharmaceuticals soared 16.65%, topping the ASX leaderboard, on no major news—though traders cited speculative buying ahead of a potential product announcement.

Banks and Real Estate Build Momentum

Financials added 0.63%, with the ASX 200 Banks Index rising 1.00%. Real Estate stocks also climbed 1.32% amid softening rate hike fears and a stable yield backdrop. The benchmark 10-year yield remained subdued, providing a tailwind for interest-sensitive sectors.

Volatility Back to Normal

The ASX 200 VIX Index hovered at 16.6, indicating a return to “normal” volatility levels. This reflects improving investor confidence following weeks of choppy trade sparked by global rate concerns and trade policy turbulence.

Top Movers & Shakers

Other notable gainers included DroneShield (+12.92%), riding high on recent defense contract wins, and Ioneer (+8%), buoyed by lithium sector optimism. On the flip side, EBR Systems dropped 12.43%, while Vista Group fell over 5% as profit-taking set in after recent rallies.

Global Backdrop Supportive

Overseas markets provided a constructive lead, with the Dow Jones and S&P 500 gaining 1.56% and 1.81%, respectively, last Friday. Asia was mixed, though the Hang Seng rose 1.13%, lending support to risk assets.

As investors position for earnings season and monitor macro developments, the ASX appears to be finding its footing. With materials and tech leading the way and volatility easing, sentiment is cautiously shifting back to a “risk-on” posture.