The Australian stock market rebounded from a weak start and is trading higher on Monday, led by strength in commodity stocks.
The benchmark S&P/ASX200 Index is gaining 21.10 points or 0.39 percent to 5,457.00, after touching a low of 5,429.60 in early trades. The broader All Ordinaries Index is up 18.60 points or 0.34 to 5,433.60.
Mining and banking stocks are mixed, while oil stocks are trading higher.
In the mining sector, BHP Billiton (BHP) is down 0.07 percent and Rio Tinto (RIO) is losing 0.10 percent, while Fortescue Metals is gaining 1.8 percent and Atlas Iron is up more than 7 percent. BC Iron is advancing more than 2 percent.
According to the Australian Financial Review, Rio Tinto is likely to announce in February that it will spend $4 billion to buy back its own shares, as part of a five-year strategy to lift underlying dividends by at least 10 percent.
Among banks, ANZ Banking is down 0.16 percent and Westpac (WBK) is losing 0.2 percent, while Commonwealth Bank is up 0.1 percent and National Australia Bank is adding 0.09 percent.
Bank of Queensland said it has appointed Jon Sutton as its new managing director and chief executive following the departure of former CEO Stuart Grimshaw in August 2014. However, the company's stock is down 0.08 percent.
Despite weak crude oil prices, oil stocks Woodside Petroleum is adding 0.7 percent, Santos is gaining 1.3 percent and Oil Search is gaining more than 2 percent.
On the economic front, the manufacturing sector in Australia fell into contraction in December, the latest survey from the Australian Industry Group revealed on Monday, with a PMI score of 46.9. That's down sharply from the 50.1 reading in November, and it moves well below the boom-or-bust level of 50 that separates expansion from contraction.
In the currency market, the Australian dollar dropped to its lowest level against the U.S. dollar in almost five years. In early trades Monday, the local currency was trading at US$0.8085, down from US$0.8137 on Friday.
On Wall Street, stocks fluctuated on Friday following the New Year's Day holiday, finally ending roughly flat - although many traders remained on the sidelines, leading to light volume.
Traders also digested disappointing economic data, including a report from the Institute for Supply Management showing a significant slowdown in the pace of growth in the manufacturing sector in December. A separate report from the Commerce Department showed an unexpected drop in construction spending in November.
The Dow added 9.92 points or 0.1 percent to 17,832.99, while the Nasdaq dipped 9.24 points or 0.2 percent to 4,726.81 and the S&P 500 eased 0.70 points or less than a tenth of a percent to 2,058.20.
Meanwhile, the major European markets ended the day in the red. While the U.K.'s FTSE 100 Index fell by 0.3 percent, the German DAX Index and the French CAC 40 Index dropped by 0.4 percent and 0.5 percent, respectively.
U.S. crude oil ended at a more than 5-1/2-year low on the first trading day of the new year Friday, with continued worries over a global supply glut, belying hopes for a recovery any time soon. This is the lowest close for a most-active contract since April 2009.
Crude Oil futures for February delivery, the most actively traded contract, dropped $0.58 or 1.1 percent to close at $52.69 a barrel on the New York Mercantile Exchange Friday.
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Market Analysis
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.