31.03.202605:16:29UTC+00Australia Markets Retreat 7.6% in March, First Drop in Four Months

The S&P/ASX 200 advanced 40 points, or 0.5%, to close at 8,501 on Tuesday, snapping a three-session losing streak as U.S. futures strengthened on reports that President Trump may move to end hostilities in the Middle East, despite ongoing disruptions in the Strait of Hormuz. Sentiment was further supported by PMI data from key trading partner China, where the manufacturing sector recorded its strongest expansion in a year in March.

Gains were led by commercial services, consumer non-durables, and non-energy minerals, while weakness in logistics and energy minerals limited the overall upside. The four major banks rose between 0.7% and 1.6%. Notable performers included Xero, up 6.9%, REA Group, up 4.4%, and Northern Star Resources, up 4.1%.

For March as a whole, however, the index fell 7.6%—its first monthly decline in four months and the steepest since January 2022—as concerns over inflation intensified amid the escalating conflict in the Middle East. Meanwhile, minutes from the RBA indicated policymakers expect further monetary tightening, cautioning that inflation could reach 5% in the second quarter if oil prices remain near USD 100.