Australia shares reclaim 9,000 mark as hopes for end to Iran war rise

By Nikita Maria Jino and Shravya Marakini

Nov 5 (Reuters) - Australian shares rose the most in more than a year, surging past the 9,000 level on Thursday after US voters rebuked President Donald Trump at midterm elections, boosting hopes for an end to the Iran war.

The S&P/ASX 200 index .AXJO closed up 2.6% at 9,065.10, its highest level since September and its strongest trading session since April 2025.

Australia joined a global stock rally triggered after voter anger over Trump's policies, particularly the Middle East conflict's impact on rising living costs, helped Democrats notch a sweeping victory over Republicans. MKTS/GLOB

Crude prices tumbled below $100 a barrel on hopes that a weakened Trump has greater incentive to seek a resolution in the Middle East, which could restore oil flows from the region. O/R

"Australian equities are staging a powerful relief rally today...the gains across eight of the 11 sectors suggest investors are regaining their appetite for risk," said Hebe Chen, senior market analyst at Vantage Markets.

The resources sub-index .AXMM was the top gainer on the benchmark, up nearly 8% in its strongest session since March 2020. BHP BHP.AX and Rio Tinto RIO.AX ended up 6.2% and 7%, respectively.

Healthcare stocks .AXHJ advanced 3.6% while the technology sub-index .AXIJ jumped 10.1%.

Flag carrier Qantas QAN.AX benefitted from the oil price slump, surging 6.2% while rival Virgin Australia VGN.AX added 11.2%.

Energy stocks .AXEJ, however, dipped 4.8% to their lowest close since late July. Woodside Energy WDS.AX and Santos STO.AX fell 6% and 5.4%, respectively.

Financials .AXFJ also ended in the red, as National Australia Bank NAB.AX dropped 5.4% after reporting a larger-than-expected drop in annual profit and a nearly 86% rise in credit impairment charges.

NAB's sharp selloff looks driven by its own earnings miss, though the wider banking outlook is getting cloudy as rate shifts, a softening property market and borrower strain squeeze the majors, Chen said.

In New Zealand, the S&P/NZX 50 index .NZ50 rose 2.2% to finish at a record 14,090.97.