Australian shares have jumped 1 per cent at the open on Thursday, tracking similar strong gains in New York as investors reacted to heightening prospects of a peace agreement between the US and Iran.
The S&P/ASX 200 Index rose 89 points, or 1 per cent, to 8882.50 in the opening five minutes of trade. This came on the back of reports that Washington had presented a one-page memorandum of understanding that would potentially lead to the gradual reopening of the Strait of Hormuz. Iran is expected to respond in coming days.
The prospects of peace saw the S&P 500 close 1.5 per cent higher in New York on Wednesday (Thursday AEST ), paced by industrials and information tech.
"Once again, another pre-market headline based on White House sourcing has sent oil sharply lower," said RBC Capital Markets commodity strategy head Helima Croft.
"However, it remains far from clear that there is any material movement toward reopening the Strait of Hormuz, or if we are instead stuck in a rebranded 'ceasefire with no oil' purgatory for the time being."
On the other hand, oil briefly plunged below $US100 a barrel, while gold and silver surged. The yield on the US 10-year note tumbled 8 basis points to 4.35 per cent.
And the Australian dollar hit a four-year high of US72.77 on Thursday, as hopes of a peace deal between the US and Iran bolstered risk appetite.
On the ASX, six out the 11 sectors rose on Thursday, led by materials, which gained 3.2 per cent. The big miners, BHP and Rio Tinto, jumped 3.4 per cent and 2.4 per cent, respectively, while gold stocks like Newmont, Evolution Mining, Perseus, and Northern Star jumped all surged between 2 and 5 per cent higher.
Energy stocks weighed on the local bourse, with oil and gas giants Woodside and Santos falling 4.3 per cent and 2.8 per cent, respectively.
Stocks in focus
In corporate news, Tabcorp shares plunged 23 per cent on news it was being investigated by AUSTRAC over "serious concerns" relating to its ability to effectively identify, mitigate and manage money laundering and terrorism financing risks.
ARN Media dropped 1.9 per cent after the company revealed the Kyle and Jackie O Show's image among advertisers, driven by a campaign to boycott the breakfast show, cost it more than $26 million last year alone.
Coles edged down 0.3 per cent as chief executive Leah Weckert warned of food inflation and warned that new players such as Amazon and Bunnings have stiffened the competitive landscape in traditional grocery categories.
Bell Financial Group, home of private wealth manager Bell Potter and online share trading platform Bell Direct, bounced 5.6 per cent after it reported unaudited net profit after tax of $16.3 million for the first four months of the year.
Light & Wonder shares sunk 8 per cent after reporting what RBC Capital Markets called "slightly disappointing" first quarter results which showed earnings before interest, taxes, depreciation and amortisation grew by 5 per cent.
And Orica rallied 5.8 per cent after reporting that first half earnings before interest and taxes totalled $512 million, up 5 per cent from the prior corresponding period.

Sumber : AFR