Australian shares end at two-month high as miners ride metals rally

[SYDNEY] Australian shares closed at an over two-month high on Thursday (Jan 15), driven by broad-based gains, with miners at the helm as investors pivoted to the heavyweight sector to capitalise on a rally in base and precious metal prices.

The S&P/ASX 200 closed 0.5 per cent higher at 8,861.70 points, ending at its strongest level since November 3. The benchmark index clocked gains for a fourth consecutive session.

Miners scored a record-closing high for a third consecutive session, with a 1.1 per cent advance. Iron ore prices, though subdued for the day, continue to be supported by robust demand for the steel-making commodity from China.

The sub-index has been on an uptrend since the second half of 2025, booking a 40 per cent surge between July and December. It has advanced nearly 8 per cent so far this month.

Valuation fatigue in banks and strong tailwinds for miners are prompting a rotational positioning into the latter, said Marc Jocum, senior product and investment strategist at Global X ETFs Australia.

Iron ore prices have been stabilising with an increase in demand for the steel-making ingredient as well as export diversification in top consumer China, making investors seek potential pockets of value in the commodity sector, Jocum added.

Shares of BHP closed at their highest point in more than two years, while Rio Tinto added 0.4 per cent to end at its highest level in a week.

Financials gained 0.5 per cent, with the four “Big Banks” rising between 0.4 per cent and 2.6 per cent.

The banking sub-index, however, has lost more than 1.5 per cent so far this month, remaining under pressure as a realignment in monetary policy and stretched valuations prompt investor outflows.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 index closed 0.7 per cent lower at 13,659.79 points, its weakest session since December 17. REUTERS