Australia’s financial markets opened lower on Monday as investors absorbed the news of Prime Minister Anthony Albanese’s historic re-election, while much of Asia remained quiet due to public holidays.
Albanese has become the first Australian prime minister in 21 years to secure a consecutive term, indicating strong public support for stability amid global economic uncertainty.
Albanese’s centre-left Labor Party achieved a commanding victory, expanding its parliamentary majority significantly—a rare feat for an incumbent government in Australia. This success contrasts with earlier predictions of a tighter race and reflects widespread voter concern over issues such as the rising cost of living, healthcare affordability, and housing.
“Australians have opted to confront global challenges in a uniquely Australian manner, supporting one another while preparing for the future,” Albanese said in his victory speech.
He added that the electorate had chosen “fairness, ambition, and opportunities for everyone,” highlighting his commitment to social equity and environmental action.
Despite the electoral triumph, the Australian share market reacted cautiously. The S&P/ASX 200 index fell by 0.29% in early trade, reversing gains from the previous session when it reached its highest level since February. The Australian dollar also dipped slightly against the U.S. dollar, trading at 0.6439.
Market participants appeared to be weighing ongoing uncertainties in global trade and economic conditions, even as the election outcome promised policy continuity. Across the Asia-Pacific region, trading was subdued with stock exchanges in Japan, South Korea, Hong Kong, and China closed for holidays, limiting regional market activity. In the United States, futures declined modestly following a strong week on Wall Street, where the S&P 500 had recorded its longest winning streak since 2004.
Albanese’s victory is widely regarded as a repudiation of the conservative opposition’s approach, which was often compared unfavourably to U.S. President Donald Trump’s style and policies. The election result echoes similar political shifts in other Western democracies, such as Canada, where centre-left parties have recently consolidated power. Analysts note that Albanese’s steady leadership and focus on domestic concerns helped reassure voters amid global instability.
With at least 85 seats secured in the 150-seat House of Representatives, Albanese is positioned to lead Australia with a strong mandate, potentially ending the cycle of frequent leadership changes that have characterised the nation’s politics over the past two decades. His second term is expected to prioritise healthcare affordability, climate change initiatives, Indigenous reconciliation, and economic resilience.