Australian shares advanced on Friday, with the S&P/ASX 200 index rising 0.3% to 8,370.4 by midday, as strong performances in the energy and banking sectors helped the market overcome losses in mining and gold stocks. The benchmark index also recorded a 0.3% gain for the week, marking its second consecutive week of positive returns and reflecting investor optimism following the Reserve Bank of Australia’s latest policy move.
The Reserve Bank of Australia (RBA) cut its cash rate by 25 basis points to 3.85% earlier in the week, marking its second reduction since 2020. The decision was made in response to moderating inflation and a more subdued global economic outlook.
Inflation data for the March quarter showed annual trimmed mean inflation falling to 2.9%, bringing it within the RBA’s 2–3% target range for the first time since 2021. The central bank indicated that while inflation risks have become more balanced, it remains cautious given global uncertainties and will closely monitor economic and labor market trends going forward.
The rate cut provided a boost to the financial sector, with the financials sub-index climbing 0.8%. Major banks led the gains: National Australia Bank and Commonwealth Bank of Australia each rose 0.8% and 0.5% respectively, while Westpac and ANZ advanced 0.6% and 0.7%. Lower borrowing costs are expected to support lending activity and consumer spending, further underpinning the sector’s outlook.
Energy stocks also contributed to the market’s strength, rising 0.6% despite overnight declines in global oil prices. The sector was buoyed by news that U.S. President Donald Trump is set to sign executive orders aimed at revitalizing the nuclear energy industry, streamlining approvals for new reactors, and strengthening fuel supply chains. Australian uranium miners with U.S. operations were among the top performers: Boss Energy surged 11.7%, Paladin Energy gained 9.2%, and Deep Yellow advanced 7.8%, reflecting renewed investor enthusiasm for nuclear-linked assets.
Meanwhile, the Australian dollar weakened slightly, down 0.1% to A$0.64 against the U.S. dollar, as markets digested the implications of the RBA’s policy easing and ongoing global trade tensions.
