How a 754% Stock Gain Is Helping Fuel a Small-Caps Rally

Australian Stocks Extend Gains After RBA Cuts Rates as Expected — Photographer: Lisa Maree Williams/Bloomberg

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October 9, 2025 at 10:24 PM UTC

Good morning and happy Friday, it’s Chris here in Melbourne with your latest news rundown ahead of the weekend. The ASX is set for a weaker open this morning, but first...

Today’s must-reads:
• Small cap stocks frenzy
• Super funds podcast
• BHP-China dispute

Australian small cap stocks are going gangbusters. They’re on track for their best year since 2009, as heightened geopolitical tensions favor defense contractors and the soaring gold price supports mining stocks. The best performer was defense play DroneShield, which has jumped a blistering 754% so far this year.

New Zealand Finance Minister Nicola Willis will deliver the Bloomberg Address in Auckland today, two days after the central bank cut interest rates by a half-percentage point. Willis is hoping the economy begins to turn soon as the center-right government prepares to fight an election late next year. Bloomberg clients can watch the speech on LIVE <GO> from around 10 a.m. Sydney time.