ASX opens lower as oil tops US$101; Microsoft unveils $25b Australia AI plan
Australian shares opened in the red despite an overnight rally on Wall Street, as oil climbed above US$101 a barrel, adding a fresh headwind to equities. Among major movers, Cochlear’s sell-off deepened. The hearing implant maker plunged 41 per cent by the close of the previous session and continued to slide, leaving the stock down 71 per cent from its early‑2024 record high of $342.77.
Energy producer Santos firmed after its first‑quarter profit report, which stated: “Full year 2026 guidance remains unchanged.” The stock was up 2.35 per cent at $7.62 at 11:00am AEST. Technology headlines dominated in Sydney, where Microsoft chief executive Satya Nadella announced a $25 billion investment in Australian artificial intelligence infrastructure by 2029.
The plan, according to the company, will expand local supercomputing and cloud capacity, bolster cybersecurity, and train workers on AI products.
Microsoft said it has extended its cybersecurity partnership with the Australian Signals Directorate, the Department of Home Affairs and other federal agencies, and pledged to train three million Australians in AI skills by 2028 after claiming it has already trained more than a million people across Australia and New Zealand.
At the event, Nadella highlighted Microsoft’s so‑called “agentic” AI models, which the company says can perform tasks such as organising meetings or creating PowerPoint presentations. Separately, Anthropic said it is expanding in Australia and will open a new office in Sydney.
The announcements come as Australia grapples with weak productivity growth. The Australian Bureau of Statistics reported the 20‑year average for labour productivity fell from 1.8 per cent in 2003–04 to 0.9 per cent in 2022–23. The federal government said in a statement the investment would make Australia more competitive and improve productivity but did not specify how.
In the legal sector, the Federal Court of Australia last week warned law firms against using generative AI in proceedings, flagging potential fines and legal consequences, and issued guidance on how AI should be used in court. Property activity is expected to ease over the Anzac Day period.
There are 793 capital city homes scheduled for auction in the week ending April 26, down 68.9 per cent from 2,551 last week and 26.3 per cent below the 1,076 auctions held in the same week last year (April 27, 2025). The public holiday typically leads to a quieter week across the combined capitals.
On energy policy, the Australian Energy Market Commission said current electricity tariffs are outdated and increasingly inequitable, proposing that a higher share of bills be recovered through fixed daily charges irrespective of consumption. Taken together, higher oil prices, corporate updates and policy signals set a cautious tone for the session.