The Australian sharemarket climbed for a second day as the immediate threat of a US-triggered trade war subsided with President Donald Trump’s pivot to his vision for the Middle East.

The S&P/ASX 200 lifted 0.5 per cent, or 40.1 points to 8457 tracking modest gains on Wall Street as ten of the 11 sectors opened higher. Energy stocks tracked a fall in oil prices.

Investors were given some reprieve by a lack of new developments in US tariff negotiations overnight as Trump instead focused on America’s relationship with major oil exporters.

Brent Crude slumped 2 per cent to below $US75 a barrel after the US president downplayed his claim that he wanted to “blow Iran to smithereens”. He also proposed that the US seize control of Gaza.

On the ASX, consumer discretionary and real estate stocks led the bourse higher in morning trading. Retail giant Wesfarmers jumped 2.3 per cent, while Goodman Group lifted 1.5 per cent. The big banks all rose more than 1 per cent, with Commonwealth Bank lifting 1.2 per cent.

Oil producers fell with Woodside and Santos down 0.6 per cent. A major rise in US crude stockpiles also weighed on prices.

Stocks on the move

In corporate news, News Corp rose 4.4 per cent, posting the index’s largest gains, after it reported higher revenues and income in the second quarter driven by record-high residential revenues from its real estate division

PEXA posted the largest loss, dropping 5.8 per cent after the property settlement exchange increased its impairment forecast to between $35 million and $40 million for the 2025 financial year. It also announced the departure of its Australia chief executive Les Vance.

REA Group fell 0.7 per cent after announcing the retirement of its CEO Owen Wilson.

Asset manager Magellan reported flat retail and institutional flows during January, sending the shares up 3.1 per cent. Some analysts had warned of substantial outflows following the departure of veteran fund manager Gerald Stack, announced last week.

Beach Energy fell 3.3 per cent after the company narrowed its guidance range for the 2025 financial year, even as profit rose 37 per cent.

And Contact Energy rose 5.9 per cent after defending its takeover offer for renewable energy player Manawa Energy. New Zealand’s competition regulator has said the deal presented competition risks.