The ASX notched a 1 per cent gain in early afternoon trading 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 was up 1.1 per cent, or 91 points at 85507.9 at 2.15pm, as nine of the 11 sectors opened higher. The index was within 25 points of its record high of 8532.30. Energy stocks tracked a fall in oil prices.

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

Brent crude slumped to below $US75 a barrel before paring some losses after the US president downplayed his claim that he wanted to “blow Iran to smithereens”. The White House scrambled on Wednesday (Thursday AEDT) to defend Trump’s proposal that the US seize control of Gaza.

On the ASX, consumer discretionary and financial stocks led the bourse higher. Retail giant Wesfarmers jumped 3.3 per cent after UBS upgraded the stock to neutral. A rally in the big banks accelerated, with Commonwealth Bank up 1.9 per cent in the afternoon. NAB rose 2.1 per cent, ANZ 2.3 per cent and Westpac 1.9 per cent.

Oil producers pared gains. Woodside was 0.3 per cent lower, having fallen as much as 1 per cent in early trading, while Santos fell 0.6 per cent. A major rise in US crude stockpiles also weighed on prices.

Stocks on the move

In corporate news, News Corp rallied 6.3 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 dropped 4.4 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.

Asset manager Magellan reported flat retail and institutional flows during January, sending the shares up 1.9 per cent. Some analysts had warned of substantial outflows following the departure of veteran fund manager Gerald Stack, which was 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.

Morgan Stanley upgraded its price target for Computershare, on expectations that higher US interest rates and improved margins could lift earnings. The shares rose 1.2 per cent.