SYDNEY, 12 December 2025 — Australia’s share market finished the week with its strongest session in more than a month, as a surge in miners, gold stocks and big banks lifted the benchmark S&P/ASX 200 to a four‑week high and extended a run of weekly gains. The ASX 200 closed up 1.23% (105.3 points) at 8,697.3, while the All Ordinaries rose 1.19% to 8,983.3. [1]
The rally was broad and decisive—yet the day also underlined a theme that has shaped December trading globally: cyclical and value-heavy markets like Australia are catching a bid while tech remains choppier, with investors balancing easier US monetary policy against higher-for-longer narratives elsewhere. [2]
ASX 200 Market Wrap: What happened in Australia’s stock market today?
Friday’s move was driven by the ASX’s heavyweight sectors—materials and financials—which together account for a significant portion of the index. Materials rose about 2.0% and Financials about 1.6%, while healthcare also contributed strongly. Tech and select consumer areas lagged. [3]
Key closing highlights (12 Dec 2025):
- ASX 200: 8,697.3 (+1.23%)
- All Ordinaries: 8,983.3 (+1.19%)
- All Tech index: down modestly on the day (dragged by global tech sentiment) [4]
Despite the strong finish, the benchmark remains roughly 4.5%–4.6% below its October record, according to market commentary during the session—keeping “new highs” on the radar, but not yet in hand. [5]
The big drivers: Commodities roar, banks bounce, and global tailwinds return
1) Gold and commodities did the heavy lifting
A standout feature of today’s Australian share market rally was the sharp move in gold-linked names. The gold sub-index jumped about 4.5%, with strength also spilling into broader resources. [6]
Market commentary linked the move to firmer commodity pricing and a shift in investor appetite toward cyclicals. In the background, traders also watched precious metals closely: gold hovered around the US$4,270/oz area during the afternoon, while silver pushed above US$64/oz in a move described as record-breaking in local reporting. [7]
Large-cap miners joined the rally. Among the notable moves cited in market coverage:
- Rio Tinto gained around 2.5%, helped by news around support for the Tomago aluminium smelter. [8]
- BHP and Fortescue posted solid gains as iron ore traded around the low‑to‑mid US$100s per tonne. [9]
2) The banks finally joined the party
After a softer stretch, Australia’s big banks delivered the kind of upside that can quickly change the tone of the index.
Coverage highlighted Commonwealth Bank as a leader on the day (around +2.1%), while NAB and Westpac also rose strongly; ANZ gained too, despite headlines around legal action by its former CEO. [10]
This matters for the ASX 200 because when banks and miners rally together, the index usually doesn’t just rise—it tends to rise fast.
Sector scorecard: Winners and laggards on the ASX today
The day’s sector pattern was clear: Australia’s “old economy” leaders outperformed, while tech and parts of consumer were softer.
Based on end‑of‑day sector performance reporting:
- Materials: +2.03%
- Financials: +1.63%
- Health Care: +1.49%
- Real Estate: +0.91%
- Utilities: +0.87%
- Information Technology: -0.46% (notably weaker) [11]
That rotation—cyclicals up, tech down—echoed offshore themes after a mixed US tech session earlier in the week, including renewed debates about AI-related spending and profitability. [12]
Top ASX movers today: Who surged and who slipped?
Multiple market summaries pointed to strong gains across mining and metals, and weakness in a handful of consumer and industrial names.
Notable gainers referenced in reporting included:
- Greatland Resources (up roughly 9%)
- Genesis Minerals (up roughly 7%)
- Alcoa Corp DRC (up roughly 6%) [13]
Notable laggards included:
- Austal (down roughly 3%)
- Metcash (down roughly 3%)
- Lovisa (down roughly 3%) [14]
In intraday snapshots, Boss Energy was highlighted among strong performers, while Metcash was flagged near the bottom of the ASX 200 movers list during the afternoon. [15]
Corporate headlines shaping sentiment on 12.12.2025
Tomago Aluminium: Government-backed talks add a new layer to the Rio story
One of the most closely watched local developments was news that Tomago Aluminium, Australia’s largest aluminium smelter, is set to remain open beyond 2028 after talks involving the company and the Commonwealth, with an energy solution to be finalised in the new year. [16]
Why investors cared: the story sits at the intersection of industrial policy, energy pricing, and long‑life resource/processing assets—a recurring theme for Australian markets as the economy balances transition goals with heavy-industry competitiveness.
ANZ: Former CEO sues over $13.5m in bonuses
ANZ was also in focus after its former chief executive Shayne Elliott sued the bank over $13.5 million in stripped bonuses, with ANZ indicating it would defend the matter. [17]
Notably, market updates indicated ANZ shares were still higher on the day, though peers outperformed—suggesting investors treated it as a governance/legal headline rather than a broad sector shock. [18]
Austal and Hanwha: Stake approval sparks debate
Austal shares fell even as coverage noted government approval for South Korea’s Hanwha to increase its stake, a development some commentators framed as strategically positive for the sector’s long-term growth options. [19]
Macro backdrop: Fed cuts help risk assets, while Australia’s rates story stays complicated
The US Federal Reserve: “Not very hawkish” rate cut supports risk appetite
A key pillar of global sentiment this week was the US Federal Reserve’s third rate cut of 2025. Weekly strategy commentary described the decision and messaging as more risk‑asset friendly than feared, helping global shares mostly rise and supporting a weaker US dollar. [20]
The Reserve Bank of Australia: a hawkish hold keeps hikes in the conversation
At home, the RBA held the cash rate at 3.60% earlier this week, warning inflation risks had tilted upward—keeping markets alert to the possibility that the next move could be a hike if inflation doesn’t cooperate. [21]
That divergence—Fed easing vs. RBA jawboning about inflation—helps explain why the Australian dollar traded near US$0.666–0.667 and why Australian bond yields remain elevated. [22]
Bond yields: Still high, and still part of the equity story
Australia’s 10‑year government bond yield was around 4.73% on 12 December, a level that keeps pressure on long-duration equity valuations (including parts of tech) while supporting bank margin narratives to a degree. [23]
Global commentary also warned that, even with the Fed cutting, longer-term borrowing costs globally have been rising again, complicating the 2026 outlook for bonds and feeding into cross‑asset volatility risk. [24]
“Santa Rally” watch: Is the ASX setting up for a stronger finish to 2025?
The phrase “Santa Rally” was everywhere in today’s market wrap commentary—and not just as a seasonal cliché.
- Market analysis argued that the combination of a supportive offshore lead and a lack of major local calendar obstacles can make December sessions particularly sensitive to positioning and flows. [25]
- Weekly strategy commentary from AMP also noted that the Santa rally in shares normally kicks in around now, while stressing the broader uptrend remains in place if growth holds up and inflation continues to cool. [26]
At the same time, analysts cautioned that Australia’s rate narrative is still a meaningful swing factor. AMP, for instance, highlighted that the December quarter CPI (late January) and monthly November CPI (7 January) will be crucial in shaping expectations for early‑2026 RBA decisions—especially after the RBA’s hawkish tone. [27]
Outlook: What investors are watching next week
With the ASX now ending the week on a strong note, attention turns to what can sustain the move.
Three themes likely to dominate near-term ASX forecasting:
- Commodities and China momentum
Resource-heavy Australia benefits when China sentiment improves and metals/energy stabilize. Strategy commentary cited China policy signals and economic data as ongoing drivers of global cyclicals. [28] - Rates and the “higher-for-longer” rebound in global yields
Even if equities celebrate Fed cuts, multiple analyses warn that the easing cycle may be ending in many places—and that longer-term yields could stay sticky. That’s a direct input into equity valuation debates going into 2026. [29] - ASX leadership and breadth
Today’s rally was powered by classic ASX leaders (miners, banks) rather than a narrow tech surge. That can be a healthier sign for index durability—but it also means the market is leaning heavily on sectors that respond quickly to commodity swings and policy expectations. [30]
Bottom line: Australia’s stock market ended the week with conviction—now comes the test
The Australian stock market today delivered exactly the kind of late‑week surge bulls had been looking for: a broad advance, strong participation from miners and banks, and renewed talk that December’s seasonal tailwinds are finally showing up.
But the next chapter is likely to be written by two forces that can change quickly: commodities (especially metals) and interest-rate expectations (especially the RBA’s reaction function as inflation data arrives in January).
This article is for informational purposes only and does not constitute financial advice. [31]
References
1. aapnews.aap.com.au, 2. www.marketindex.com.au, 3. www.marketindex.com.au, 4. www.marketindex.com.au, 5. www.abc.net.au, 6. www.marketindex.com.au, 7. www.abc.net.au, 8. aapnews.aap.com.au, 9. aapnews.aap.com.au, 10. aapnews.aap.com.au, 11. www.marketindex.com.au, 12. www.reuters.com, 13. www.investing.com, 14. www.investing.com, 15. www.abc.net.au, 16. www.abc.net.au, 17. www.abc.net.au, 18. www.abc.net.au, 19. www.abc.net.au, 20. www.amp.com.au, 21. www.reuters.com, 22. www.marketindex.com.au, 23. www.investing.com, 24. www.reuters.com, 25. www.marketindex.com.au, 26. www.amp.com.au, 27. www.amp.com.au, 28. www.amp.com.au, 29. www.reuters.com, 30. www.marketindex.com.au, 31. www.abc.net.au
