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Highlights

  • ASX 200 rises 0.2% to 8,611.50 points, nearing June 11 record.

  • Financials and tech stocks lead gains ahead of expected RBA rate cut next week.

  • Losses in mining and energy stocks limit overall index growth.

Australian shares edged higher on Friday, bringing the benchmark index within striking distance of a record high as rate-sensitive sectors rallied on expectations that the Reserve Bank of Australia (RBA) will cut interest rates at its upcoming meeting.

The S&P/ASX 200 Index rose 0.2% to 8,611.50 points (at the time of writing on 4 July 2025), just 27.6 points short of its all-time high recorded on June 11. The benchmark is on track for its best weekly performance since mid-May, gaining more than 1% so far this week.

Investor sentiment was buoyed by a Reuters poll of economists indicating the RBA is likely to cut the official cash rate on Tuesday, in what would be the third reduction of the year. The number of anticipated rate cuts for 2025 has been revised up to five, following earlier projections of three. The shift reflects faster-than-expected easing in inflation and a slowing growth outlook.

Financials and Property Rally on Rate Outlook

Despite the usual impact of lower rates on bank margins, financial stocks rebounded from recent losses. The ASX Financials Index rose 0.4%, recovering from Thursday’s more than 1% drop.

Among major banks:

  • National Australia Bank gained 0.2%

  • Westpac rose 0.4%

Real estate stocks, which are particularly sensitive to interest rate changes, also advanced. The ASX Real Estate Index climbed up to 1%, reaching a three-week high. Leading gains were:

  • Scentre Group, up over 1%

  • Goodman Group, also up more than 1%

Tech Sector Tracks U.S. Gains

Technology shares followed strong overnight leads from Wall Street, where the S&P 500 and Nasdaq hit fresh records. The ASX Technology Index gained 1.4%, supported by:

  • Xero, which rose 0.9%

Commodities Weigh on Index

Offsetting the broader rally were losses in heavyweight miners and energy stocks.

The ASX Materials Index fell 1.3% after a strong showing on Thursday, as key constituents declined:

  • BHP Group, down 2%

  • Rio Tinto, down 2.3%

Gold producers were also under pressure, with the ASX Gold Index easing 0.2% following a 1% fall in bullion prices overnight.

Oil stocks dipped 0.2%, mirroring weakness in crude oil markets.

New Zealand Market

Across the Tasman, New Zealand’s S&P/NZX 50 Index gained 0.5% to finish at 12,770.55 points.