Australian shares are poised to rise after oil prices tumbled more than 5% to a three-week low as signs of progress in US-Iran diplomacy raised hopes of easing supply disruptions through the Strait of Hormuz. Light & Wonder reported second quarter adjusted earnings of $1.99 per share on revenue of $828 million, compared with adjusted earnings of $1.58 on revenue of $809 million a year earlier. Argo Investments reported fiscal 2026 earnings of AU$0.343 per share on revenue of AU$296.3 million, compared with earnings of AU$0.341 on revenue of AU$290 million a year earlier. Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1.8%, 2.6%, and 1.7%, respectively. Australia's benchmark index rose 1.4%, or 126.5 points, to close at 9,145.80 on Tuesday.

Australia's services sector recovery gathered pace in July as new orders returned to growth, lifting business activity to a six-month high, although firms continued to face elevated fuel and labor costs driving faster output price inflation.