ASX Rises on Commodity Strength as Energy and Materials Lead Thursday Rally

Key Highlights:

• ASX 200 adds 0.32%, closing at 7,784.0
• Energy sector surges 2.76% on higher crude prices
• Materials gain 1.26%, gold stocks rally as gold nears $3,360/oz
• Meteoric Resources, Brainchip lead top gainers
• Tech, healthcare and consumer discretionary stocks underperform
• Market volatility remains low, VIX holds at 14.3
   

Australia’s share market extended gains on Thursday as investor appetite for commodities revived. The S&P/ASX 200 closed 25.1 points higher at 7,784.0, supported by strong performances in energy and materials. The All Ordinaries rose 0.30%, and the Small Ordinaries outpaced broader indices, up 0.59%.

The Energy sector led with a robust 2.76% gain, mirroring strength in oil prices. Brent crude traded near $66.04 per barrel, lifted by global supply concerns. Karoon Energy (+5.62%) and Ampol (+6.05%) were among the top-performing energy names.

Meanwhile, Materials advanced 1.26%, bolstered by the gold rally. Gold prices reached $3,357.40/oz, gaining 0.33% as investors sought safe-haven assets. The ASX All Ordinaries Gold Index climbed 0.93%, with Santana Minerals (+10.58%), St Barbara (+8.00%), and Bellevue Gold (+5.41%) showing strength.

Among small and mid-cap movers, Meteoric Resources soared 18.18% following updates on its rare earth portfolio, while Brainchip Holdings jumped 17.78% as sentiment shifted back toward AI-focused tech.

Despite the broader market’s gains, Information Technology slipped 0.28%, continuing to feel pressure from a tech-led sell-off in the U.S. overnight. The NASDAQ fell 3.07%, and the S&P 500 dropped 2.24%, following remarks from Fed Chair Jerome Powell, who warned that inflation risks remain persistent.

Health Care and Consumer Discretionary also lost ground, falling 0.51% and 0.31%, respectively. Among the laggards, Tourism Holdings Rentals fell 12.09%, and Nanosonics dropped 5.05%.

Market volatility stayed contained, with the ASX VIX Index at 14.3, indicating low risk sentiment over the next 30 days.

With commodity markets continuing to drive local sentiment, investors will now be watching China’s GDP figures and key U.S. economic indicators to gauge the outlook for growth-sensitive sectors.