Jun 22, 2026 – 5.08pmAustralia’s sharemarket is expected to remain in the doldrums for the rest of this year as strategists warn that high interest rates, steep equity prices, and recent government tax changes will leave the bourse trailing far behind its global rivals.While investors from New York to Tokyo have been riding the booming artificial intelligence trade, Australia’s S&P/ASX 200 Index has returned a meagre 1.2 per cent gain this year. That compares with a 14 per cent jump for Wall Street’s tech-heavy Nasdaq and a 43 per cent surge for Japan’s Nikkei 225.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
‘Uninspiring’: Investors lose patience with ASX as money goes offshore
Strategists warn the S&P/ASX 200 Index will lag its global rivals as high rates, elevated valuations and property tax changes push capital overseas.
TL;DRAI
ASX 200 gained only 1.2% YTD while Nasdaq surged 14% and Nikkei 43%, driven by AI boom that bypassed Australia amid high interest rates and recent tax changes. Capital flight risks starving local tech stack and enterprise AI adoption funding as offshore returns outpace domestic equities.
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