Australian Assets Shunned by Investors Amid Rate Risks

What’s next for Australia’s markets this year? According to several global investors, assets here risk being left behind as investors prefer hotter markets that promise better returns. There’s also the looming prospect of rate hikes that is weighing on sentiment. Meantime, BlueScope got a A$13.14 billion ($8.8 billion) takeover bid for the steel company from a group controlled by billionaire Kerry Stokes. - Carmeli Argana, Australian stocks reporter

A pullback from Australian assets is accelerating as investors shift capital toward hot markets globally that promise returns far outpacing muted prospects at home. The message for investors is clear: look elsewhere. The benchmark S&P/ASX 200 Index trailed peers in 2025, while bond prices dropped as the central bank weighs pivoting back to tightening monetary policy.