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Asia Markets
Australian Shares Fall as RBA Raises Cash Rate; Regis Resources to Acquire Vault Minerals in Merger of Equals
Australian shares fell on Tuesday after the Reserve Bank of Australia (RBA) decided to increase the official cash rate by 25 basis points to 4.35%.The S&P/ASX 200 Index retreated nearly 0.2%, or 16.60 points, to close at 8,680.50, setting a new 20-day low.Brent crude oil futures fell to $112.93 per barrel. The US and Iran conducted new attacks in the Persian Gulf in a bid to enforce blockades in the waterway. Maersk said the Alliance Fairfax, a US-flagged vehicle carrier operated by its Farrell Lines unit, exited the Strait of Hormuz accompanied by US military assets on Monday, Reuters reported.On the domestic front, Australia's seasonally adjusted household spending rose 1.6% to AU$80.41 billion in March, following a 0.3% increase in the previous month, the Australian Bureau of Statistics reported.The central bank said inflation picked up materially in the second half of 2025, with information since the beginning of 2026 confirming that some of the increase reflected greater capacity pressures. The RBA noted that the Middle East conflict has resulted in sharply higher fuel and related commodity prices already adding to inflation, with early signs that many firms experiencing cost pressures are looking to increase prices of goods and services.Australia's service sector returned to expansionary territory in April, helped by a recovery in business activity following a contraction in March. The S&P Global Australia Services PMI Business Activity Index rose to 50.7 in April from 46.3 in March.In company news, Regis Resources (ASX:RRL) agreed to acquire Vault Minerals (ASX:VAU) in a merger of equals to create a major gold producer that is expected to produce more than 700,000 ounces of gold per year through five operating assets across Western Australia. Under the proposed deal, Vault shareholders will receive 0.6947 shares in Regis for each Vault share owned. Regis' shares fell over 5% at market close, while those of Vault rose nearly 3%.Westpac Banking (ASX:WBC, NZE:WBC) reported fiscal first-half earnings of AU$1.014 per share excluding notable items, up from AU$0.998 a year earlier. Net operating income for the six months ended March 31 was AU$11.28 billion, compared with AU$10.99 billion a year earlier. Its shares closed down nearly 2%.Lastly, Magellan Financial Group (ASX:MFG) appointed Vinva Investment Management as the investment manager of certain global equity funds. The investment strategy for the Magellan Global Fund Open Class Units Active ETF and the Magellan Global Fund Hedged, which had about AU$5.3 billion of assets under management at the close of April, will be changed to the Vinva Global Alpha Strategy. Its shares fell over 6% on market close.
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International
Swiss Annual Inflation Rate Rises to 0.6% in April
Switzerland's annual inflation rate stood at 0.6% in April, up from 0.3% in the previous month, according to data from the country's Federal Statistical Office published Tuesday.On a monthly basis, consumer prices were 0.3% higher, compared with the previous 0.2% gain and the expected 0.4% growth.
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Equities
Riyad Capital Keeps Sabic at Neutral After Q1 Results
Riyad Capital affirmed its investment case for Saudi Basic Industries (SASE:2010), d/b/a Sabic, after the petrochemicals manufacturer published its first-quarter results."SABIC reported net profit of SAR 0.01 bln, a strong reversal of losses both Y/Y and Q/Q, deviating from our more conservative estimate, mostly because we had accounted for residual fair value adjustments on the EP and ETP carve-outs, which had been flagged as incomplete at year-end 2025 but were ultimately not recognized in the quarter. Within the petrochemicals segment, however, subsidiary Kayan's separately-reported 1Q26 numbers show a -SAR 489 mln Y/Y finished-goods inventory build alongside flat gross margins (-19.1% vs -18.9%), suggesting March demand softened materially as the early-quarter butane tailwind faded, and tempering our conviction on the durability of the petrochemicals' recovery," the research firm said Monday, noting the group's performance offset its subsidiary's weakness.Meanwhile, Sabic's sales decreased 11% year over year to 26.15 billion Saudi riyals, against Riyad Capital's estimate of 24.30 billion riyals. On a quarterly basis, the company saw lower revenue in its petrochemicals and agrinutrients units, with the specialties segment recording nearly 1% growth.The stock is still rated at neutral, with a price target of 60 riyals.
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