Closing Bell 1st April: RBA keeps rates on hold before election. ASX higher led by property and utilities

What's Affecting Markets Today

The Reserve Bank of Australia has kept the official cash rate unchanged at 4.1 per cent, as anticipated by markets. The board cited global uncertainties and emphasised its focus on returning inflation to target sustainably. While underlying inflation continues to ease, the RBA remains cautious, reiterating its data-dependent approach. February’s inflation report and a softening labour market have strengthened expectations of a potential rate cut in May. However, Governor Michele Bullock has warned against assuming a rate-cutting cycle, given ongoing labour market strength. Further insights into the RBA’s outlook are expected during Bullock’s media conference at 3:30pm.

Asia-Pacific markets advanced on Tuesday, recovering from recent declines as investors awaited further details on U.S. President Donald Trump’s proposed tariffs. Japan’s Nikkei 225 rose 0.73%, while the broader Topix gained 0.91%, after the Nikkei entered correction territory on Monday with a sharp 4.05% drop to a six-month low.

South Korea’s Kospi index climbed 1.44% and the small-cap Kosdaq surged 2.48%, reflecting broad-based optimism. In China, the CSI 300 edged 0.01% higher, while Hong Kong’s Hang Seng Index rose 0.66%. Economic data also supported sentiment, with China’s Caixin manufacturing PMI for March coming in at 51.2, ahead of expectations and up from 50.8 in February.

Australia’s S&P/ASX 200 pared earlier gains but still closed up 0.42%. Meanwhile, U.S. equity futures slipped as markets remained cautious ahead of Trump’s tariff announcement.

Overnight on Wall Street, the S&P 500 rebounded 0.55% to close at 5,611.85 after falling as much as 1.65% intraday. The Dow Jones Industrial Average gained 417.86 points, or 1%, to 42,001.76. The Nasdaq Composite dipped slightly, down 0.14% to 17,299.29.

ASX Stocks

ASX 200 - 7,915.9 (+0.90%)

Australian shares are rebounding, tracking gains on Wall Street ahead of US President Donald Trump’s anticipated announcement of reciprocal tariffs. By 2:30pm, the S&P/ASX 200 was up 0.8% or 61.2 points at 7904.6, while the All Ordinaries gained 0.6%. All 11 sectors were in positive territory, led by real estate and utilities.

Overnight, the S&P 500 reversed a 2% intraday decline to close up 0.6%, though US futures are now pointing lower. Local investors are closely watching the Reserve Bank for signs of a policy shift, with markets pricing a 70% chance of a rate cut in May.

Tech stocks lagged, with SiteMinder down 2.2% and Gentrack falling 4.1%, though WiseTech rose 0.9% following an RBC upgrade. Utilities outperformed, with Origin Energy up 2.3% and AGL Energy gaining 2%.

Goodman Group rose 2.4% amid renewed rate cut expectations. AVJennings jumped 7.4% on a takeover bid from Proprium Capital and Avid Property. Southern Cross Electrical Engineering surged 10.3%, while Tower fell 10.7% after a discounted Bain Capital selldown. SSR Mining dropped 6.7% despite improved production forecasts.

Leaders

HLI – Helia Group Ltd (+4.39%)
DRR – Deterra Royalties Ltd (+3.89%)
ZIM – Zimplats Holdings Ltd (+3.69%)
SGM – Sims Ltd (+2.87%)
BSL – Bluescope Steel Ltd (+2.82%)

Laggards

DYL – Deep Yellow Ltd (-6.60%)
PDN – Paladin Energy Ltd (-5.28%)
CAT – Catapult Group International Ltd (-5.06%)
PLS – Pilbara Minerals Ltd (-4.75%)
JHX – James Hardie Industries Plc (-4.47%)

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