5 March 2026

The Australia 200 trades 42 points higher (0.48%) at 8944 at 3.30pm AEDT.

ASX 200 rises on tech and health gains amid easing Iran tensions

The Australia 200 (ASX 200) entered calmer waters today, initially adding 62 points (0.70%) in early trading to hit a high of 8964.1 before trimming gains. Despite pulling back from the intraday high, the ASX 200 remains on track to snap a two-day losing streak, which saw it drop 324 points (-3.5%) from recent record highs.

The positive session locally followed gains on Wall Street overnight, where risk sentiment was bolstered by signs of potential de-escalation with Iran, and resilient economic growth data that eased fears of inflationary pressure. Although Iran has since denied reaching out via back channels, and the full truth may remain unknown, the market appears content to take the de-escalation narrative at face value for now, especially with squadrons of B-52s in operation.

Australian households tighten budgets while China lowers growth ambitions

Today’s key economic release was Australian household spending for January, which rose a less-than-expected 0.3%, after a revised -0.5% in December. This confirms the story seen in yesterday’s national accounts, where household consumption grew a subdued 0.3% quarter-on-quarter (QoQ), and the household saving ratio climbed to 6.9% – the highest since September 2022. These numbers highlight that cost-of-living pressures are still significant, with Australians channelling extra income into savings rather than spending.

Meanwhile, in China, leaders have set the economy’s growth target below 5% for the first time in more than three decades, signalling more measured ambitions amid ongoing property sector headwinds and global uncertainty.

ASX 200 stocks

Financial sector

• NAB which added 1.59% to $47.42
• Westpac which lifted 0.90% to $41.50.
• QBE took a hit, down 3.48% to $20.81 as it went ex-dividend, with the price adjusting for the upcoming final payout.

Health care sector

The health sector has also staged a solid recovery, up around 2.06% as investors rotate into defensive names trading on cheaper valuations.

• Telix Pharma surged 6.44% to $10.08
• Pro Medicus lifted 4.2% to $121.06
• CSL climbed 2.69% to $146.72, helping the sector provide a cushion against pockets of profit-taking elsewhere.

Materials sector

The materials sector has been the biggest drag today, but for all the right reasons.

• BHP fell 0.90% to $55.21 after going ex-dividend US$0.73 per share
• Rio Tinto gained ground, lifting 0.52% to $163.56 despite its own ex-dividend adjustment. The resilience in Rio was supported by a 0.93% rise in iron ore to $99.70.

Technology sector

Tech stocks led the way higher on Wall Street as investors took advantage of the February pullback, attracted by attractive valuations and firmer data showing the economy's resilience. That momentum has been mirrored on the ASX 200, where local technology names have made significant gains in afternoon trade.

• Zip jumped 9.72% to $1.78
• DroneShield soared 8.48% to $3.64
• WiseTech Global added 6.76% to $47.41, reflecting the sector’s role as the clear outperformer today.

ASX 200 technical analysis

The ASX 200’s retreat back below its breakout level at 9110 – 9100 is a negative development, exposing last week’s rally as a false breakout. If today’s fall below 9110 is sustained over the next 24 to 48 hours, the pullback could deepen back towards 8850.

The ASX 200’s 324-point (-3.5%) two-day retreat saw it fall below last week’s breakout level at 9110 – 9100, which becomes resistance on the way back up. A sustained break above here would open the way for a retest of the 9202.9 record high before a push towards 9400 – 9500. Until then, allow this week’s correction to play out.

ASX 200 daily candlestick chart

• _{Source: TradingView. The figures stated are as of 5 March 2026. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}