ASX 200 Closes Higher: Energy Gains and Tech Rebounds on Better Day For Bulls

The benchmark ASX 200 index climb 0.44% today, closing at 8,940.30 points after energy shares and technology names helped drive markets higher after a difficult week.

The session marked a constructive shift in sentiment for bulls, following several days of heightened volatility tied to escalating conflict in the Middle East. Market breadth was decisively positive, with advancing stocks outnumbering decliners 701 to 448 across the board, while the ASX 200 VIX volatility index plunged 11.72% to 14.106, signalling a return of risk appetite among market participants.

Energy refiners dominated the day’s performance, with Viva Energy Group surging 11.89% to $2.07 and Ampol climbing 8.53% to $32.06 as oil prices remained elevated amid ongoing disruptions around the Strait of Hormuz. UBS recently lifted its 2026 oil price forecasts, projecting Brent crude to average around US$72 per barrel with upside risk to US$90 or higher if critical infrastructure in the region comes under attack.

The Information Technology sector posted the strongest sectoral performance, rising 4.56% to close at 1,760.20 as Australian tech stocks tracked an overnight rebound in US markets. WiseTech Global jumped 7.14% to $47.57, looking to start its recovery from a brutal six-month drawdown that saw the logistics software provider lose roughly 60% of its value on concerns that AI would erode its competitive moat.

Defence technology specialist DroneShield rallied 10.12% to $3.70, building on momentum from its transformational FY2025 results released in late February. The company reported revenue growth of more than 270% year-on-year, with a multi-billion-dollar pipeline and a sustained swing into profitability.

The buy-now-pay-later sector also participated in the risk-on rotation, with Zip Co surging 9.88% to $1.78. The move comes shortly after the company announced a $50 million on-market share buyback covering up to 7.25% of issued capital, starting around 6 March 2026. The buyback follows a brutal 34-40% single-day crash on 19 February after disappointing first-half FY26 earnings showed revenue margin compression and flat second-half guidance. Director Kevin Moss purchased approximately 20,000 shares in recent days, providing an additional confidence signal to markets.

Mesoblast advanced 7.92% to $2.18, continuing its re-rating as a commercial-stage cell therapy company. The biotech reported a dramatic shift in its half-year FY2026 results, with revenue surging from US$3.2 million to US$51.3 million driven by its stem-cell product Ryoncil for paediatric steroid-refractory acute graft-versus-host disease. Net product sales of Ryoncil reached US$48.7 million with gross margins of approximately 93%, and management guided for full-year FY2026 net sales of US$110-120 million as centre coverage and reimbursement expand across the United States.

IperionX, the titanium and critical materials producer, gained 9.46% to $7.29 in what appeared to be momentum-driven buying rather than fresh news flow. The company continues to advance its US titanium manufacturing campus and has emphasised US government funding support in response to earlier short-seller scrutiny.

Financials added 0.75% as yields stabilised and panic around the Middle East conflict eased, while Materials slipped 0.48% and Industrials fell 0.29%, suggesting markets remain selective rather than embracing a broad-based global growth narrative.

The session’s laggards were Monadelphous Group (down 4.61% to $30.22), trading ex-dividend with a cash payout of approximately US$0.49 per share. Genesis Minerals declined 4.23% to $7.25 in what appeared to be profit-taking after strong half-year results showed 147,000 ounces of gold production and $238 million in net income. Mercury NZ dropped 3.80% to $5.32, QBE Insurance slipped 3.53% to $20.80, and Amcor declined 3.52% to $64.22, with the defensive names underperforming as markets rotated into higher-beta cyclicals and growth stocks.

Perhaps the most significant global signal came from South Korea, where the KOSPI index rebounded 9.63% to 5,583.90 after suffering its worst day in history with a 12.1% plunge on 4 March. The near-10% recovery, with Samsung Electronics and SK hynix both jumping more than 10%, provided crucial psychological confirmation that the previous days’ sell-offs were being faded rather than extended. The KOSDAQ posted a record daily gain as sidecar curbs were triggered on the upside, underscoring the violence of the two-day swing but also reinforcing a narrative shift from “tail-risk event” to “contained but serious conflict.”

The session overall has seen positive breadth, lower volatility, leadership from tech and energy, and a decisive KOSPI rebound. These could point to a relief-and-rotation day rather than the start of a sustained bull phase, with geopolitics still a key factor.

Looking ahead, the key variables are geopolitical and macro. Any escalation in the Iran conflict that threatens Hormuz shipping lanes or critical energy infrastructure would likely trigger another risk-off wave, with energy beneficiaries rallying further but broader markets under pressure from inflation and growth concerns. Conversely, signs of de-escalation or effective containment would support a more sustained rally, particularly in cyclicals and rate-sensitive growth stocks that have been held back by uncertainty.