The Australian sharemarket posted its strongest weekly gain since May after a third record close this week, driven by a rebound in heavyweight CSL and after BHP chief executive Mike Henry told investors commodity demand remained resilient due to Chinese demand.

The S&P/ASX 200 jumped 118.2 points, or 1.4 per cent, to 8757.20 on Friday – its best one-day rise since April 10 after hitting an all-time intraday high of 8776.40 earlier. For the week, the index added 2.1 per cent as the bourse smashed its record close three times.

BHP helped lead the charge, rising 3 per cent to $40.29 after reporting record output across its key commodities. Copper production lifted 8 per cent to an all-time high of 2.01 million tonnes, while its Western Australia Iron Ore division delivered 290 million tonnes despite earlier cyclone disruptions.

Iron ore hit a three-month high after Henry said demand for commodities remained resilient in 2025, underpinned by strength in China.

“That resilience largely reflects China’s ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,” Henry said.

All 11 sectors finished in the green, with health care the standout. CSL jumped 3.6 per cent to $257.38 for a weekly gain of 7 per cent – its best since December 2021 – after UBS reaffirmed its buy rating and $310 price target.

Ten Cap chief executive Jason Todd said investors are right to stay bullish as markets continue to shake off uncertainty.

“We expect equities to continue climbing a wall of worry through the second half of 2025. Maybe not in a straight line but certainly with an upward bias,” he said.

“Equity markets are showing a high degree of resiliency through their repeated ability to absorb downside risks, and we think this is a solid base for further gains as we move into the second half of the year.”

Stocks in focus

Mesoblast soared 34.7 per cent to $2.41 after reporting strong early sales of its cell therapy Ryoncil, which became commercially available in March.

Atlas Arteria slipped 0.4 per cent to $5.15 after the toll road operator lost a legal battle in the Virginia Supreme Court over plans to raise tolls by up to 40 per cent on its Dulles Greenway near Washington.

Virgin Australia climbed 1.9 per cent to $3.27 after UBS initiated coverage with a buy rating and $3.90 target, citing a clearer strategy, stronger fundamentals, and an improved structure since relisting.

That’s a wrap on today’s news. Join us again soon for more live markets news.