Sydney, Feb 4, 2026, 21:49 AEDT — Market closed
- Australia’s S&P/ASX 200 rose 0.8%, driven by strength in materials and energy sectors
- Technology shares plunged, led by Xero, which dropped over 15% in a single session
- Traders digested the RBA’s rate hike alongside another global selloff in software stocks
Australian shares ended Wednesday on a strong note, propelled by gains in miners and banks despite a sharp drop in tech stocks. The S&P/ASX 200 climbed 0.8% to 8,927. Materials surged 3.6% and energy rose 3.0%, while information technology plunged 9.4%. Yancoal Australia led the charge, jumping 9%, but Xero tumbled 15.9% and WiseTech Global dropped 10.7%.
The split tape followed the Reserve Bank of Australia’s 25 basis-point increase — raising the cash rate to 3.85%, its first rise in two years. Governor Michele Bullock said she wasn’t sure if this marked the start of a tightening cycle and that the board would be “actively monitoring” incoming data. Reuters
Beyond Australia, software and data stocks have been hit hard as investors react to Anthropic’s latest plug-ins for its Claude Cowork agent, raising fresh concerns over AI’s disruptive impact. IG chief markets strategist Chris Beauchamp described Anthropic as “parking its tanks on their lawn,” highlighting growing doubts about the resilience of certain business models. Reuters
On the ASX 200, miners and coal stocks took the lead. Yancoal jumped 8.8% to A$6.29, South32 climbed 6.3% to A$4.80, and Regis Resources rose 6.1% to A$8.18. On the downside, Xero plunged 15.7% to A$81.06, WiseTech Global slid 10.3% to A$51.49, and Technology One lost 10.5%, closing at A$22.65.
Tech stocks took a big hit early on. The ASX 200 Tech Index plunged as much as 8%, with Xero and WiseTech dropping anywhere from high single digits to double digits. Technology One wasn’t far behind, slipping nearly 10%. Gold miners saw gains after gold bounced back, and MarketIndex reported JPMorgan upgraded Northern Star Resources to “Buy” ahead of its half-year results on Feb. 12. Neuren Pharmaceuticals went into a trading halt, expected to last until Feb. 6 at the latest. Market Index
The market ended the session appearing stronger than the mood suggested. Advancers weren’t overwhelming, and the index’s rise depended heavily on a few resource giants, while tech and other growth sectors slipped.
Rate-sensitive sectors remained shaky as investors adjusted to the prospect of higher borrowing costs. While a stronger rate environment can boost banks’ margins, it also casts doubt on credit growth and household spending with mortgage rates on the rise.
Commodities are steering the market once more, and Australia feels the impact both ways. When metals and energy prices rebound, miners and producers get a boost. But a firmer Australian dollar eats into exporters’ offshore earnings once those profits are converted back into local currency.
The rebound isn’t straightforward. Should the global software selloff continue or spread to broader risk assets, local tech could weigh heavily on sentiment. Plus, any dip in commodity prices would leave the index more vulnerable than it appears.
Traders in the next session will watch offshore tech and AI news closely, while also tracking the rate direction following the RBA’s pivot. Several company-specific catalysts are lined up over the coming days, prompting investors to brace for sudden moves around those announcements.
