July 1 (Reuters) - Australian shares began the second half of 2025 on a positive note on Tuesday, supported by gains in gold, real estate and tech stocks, as expectations of domestic interest rate cuts and renewed optimism over U.S. trade talks boosted sentiment.
The S&P/ASX 200 index .AXJO rose 0.2% to 8,557.1 points by 0101 GMT after gaining 4.4% in the first six months of the year.
Investors are nearly certain the Reserve Bank of Australia $(RBA)$ will cut rates next week, with swaps pricing in a 92% chance of a reduction from the current 3.85% cash rate, following signs of easing inflation in May.
Markets are awaiting the retail sales data for May on Wednesday after a weak reading in April raised concerns about consumer spending.
Rate sensitive real-estate stocks .AXRE climbed 0.9%.
Local property prices scaled another peak in June as rate cuts and expectations of more to come boosted demand in the face of low housing supply, data showed.
Financials .AXFJ eased 0.1%, but remained near record highs, weighed by a 1.6% drop in Commonwealth Bank of Australia CBA.AX.
Meanwhile, U.S. trade deals with China and the UK fuelled optimism that a full-blown global trade war can be averted, with investors hoping for more deals ahead of U.S. President Donald Trump's July 9 deadline.
Tech stocks .AXIJ gained 0.9%, tracking an overnight rally on Wall Street, where the S&P 500 and Nasdaq notched record closing highs. .N
Gold stocks .AXGD climbed 1.4% after bullion prices rose overnight as the dollar eased. GOL/
Evolution Mining EVN.AX and Northern Star Resources NST.AX advanced 1.4% and 1.5%, respectively.
Insignia Financial IFL.AX jumped as much as 11.3% to become the top gainer on the benchmark index, after announcing investment manager CC Capital is actively working toward a binding takeover offer.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.3% to 12,634.83 points.
(Reporting by John Biju in Bengaluru; Editing by Sumana Nandy)
((john.biju@thomsonreuters.com))
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