ASX opens higher as markets anticipate upcoming RBA policy
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More news: Australian shares opened higher with miners, real estate and tech stocks lifting the benchmark up.
The benchmark ASX 200 index was up by 99 points, or 1.13%, to 8,877 at 10:34am AEDT. Nine of the 11 sectoral indices opened in the green.
Miners (+1.62%) led early gains, lifted by BHP (+1.57%), Rio Tinto (+2.04%), Northern Star (+1.02%) and Evolution Mining (+1.95%).
NRW Holdings (+4.44%) jumped at the open after securing three new contract deals in Western Australia.
However, energy (-0.28%) was the worst performing sector, with the fall led by Woodside (-0.80%), Santos (-0.15%), Whitehaven Coal (-0.22%) and New Hope Corporation (-0.65%).
Neuren Pharmaceuticals (-10.52%) was one of the worst performers across the ASX 200 after flagging a setback in the approval for its Rett syndrome treatment in Europe.
GrainCorp (-2.74%) extended prior day losses after flagging an earnings decline in FY26 due to global supply concerns.
The Reserve Bank of Australia is scheduled to release its monetary policy decision at 2:30pm AEDT.
Australian shares to open higher as S&P 500 rallies to record
The news: Australian shares are set to open higher after the S&P 500 climbed to a record high on Monday, driven by gains in chipmakers and other artificial intelligence-related stocks, while small-cap shares also advanced.
Investors will closely watch the Reserve Bank of Australia's first policy decision of 2026 today, with all four major banks expecting a rate hike.
The numbers: Updated at 7:34am AEDT:
- ASX futures: up 98 points to 8,873.
- Wall Street: Dow Jones up 1.06%, S&P 500 up 0.61% and the Nasdaq up 0.55%.
- Europe: CAC 40 up 0.67%, DAX up 1.05% and FTSE 100 up 1.15%.
- Spot gold: down 4.46% to USD4,670 per ounce.
- Oil prices: Brent down 4.38% to USD66.28/bbl and US WTI down 4.67% to USD62.17/bbl.
- AUD: down 0.18% at 69.45 US cents.
- Bitcoin: up 1.55% to USD78,209.
The context: All three major US indices traded higher on Monday, with the S&P 500 touching a record high, buoyed by gains in AI-related stocks. The rise marked the S&P 500's first gain in three sessions following recent concerns over elevated valuations in technology companies.
The Russell 2000 jumped 1.6% on Monday, outperforming the S&P 500 and Nasdaq so far in 2026, reflecting renewed investors appetite for small-cap stocks.
Elsewhere, US factory activity expanded for the first time in a year in January, with the manufacturing Purchasing Managers Index rebounding to 52.6 last month.
Locally, the spotlight will turn to the upcoming RBA policy decision today at 2:30pm AEDT. Westpac, ANZ, Bank of Queensland and HSBC are forecasting a 25 basis points hike to 3.85% following stronger-than-expected inflation and employment data. Markets are also pricing in multiple hikes this year.
On the data front, the Australian Bureau of Statistics will release December building approvals data at 11:30am AEDT.
The source: Reuters
