Australia’s financial markets celebrated a robust rally this week following Prime Minister Anthony Albanese’s re-election, overcoming fears of economic fallout from U.S. tariffs. The S&P/ASX 200 surged 2.3%, with mining giants like BHP and Rio Tinto leading gains, as investors embraced Albanese’s promise of stability. His opponent, Peter Dutton, who lost his seat after a campaign echoing Trump’s rhetoric, had spooked markets with talk of aggressive trade policies.
President Trump’s 25% tariffs on Australian aluminum and steel, announced last month, initially triggered a sell-off, with fears of a broader trade war. However, Albanese’s victory reassured investors, signaling continued investment in green energy and infrastructure under his Labor government. “This win is a vote for economic pragmatism,” said Sarah Thompson, a Sydney-based analyst, noting a 3.5% spike in clean energy stocks.
The Reserve Bank of Australia welcomed the market’s response but cautioned that global trade uncertainties, including potential Chinese retaliatory tariffs, could pose risks. Small businesses, already grappling with higher import costs, voiced concerns on X, with #AussieEconomy trending. “Tariffs are killing us, but Albanese gives hope,” posted by a X user.
The rally has also spotlighted Australia’s role in global supply chains, particularly for critical minerals. Albanese’s pledge to deepen ties with ASEAN nations could offset U.S. trade pressures, analysts say. As markets stabilize, Nuzpost explores whether Australia can navigate these choppy waters and maintain its economic momentum in a volatile global landscape.