Top Australian shares to watch
Read on to find out the top Australian stocks to watch this quarter, organised by largest market cap. These are not recommendations, simply some of the largest Australian companies across a range of sectors.
Australia's macroeconomy
Australian inflation remains a core problem, and increases in the cost of borrowing will continue to put pressure on the economy. Key potential pressure points include overleveraged mortgage borrowers, the potential for bad bank loans, and the slowdown of the Chinese economy, which is by far Australia’s largest two-way trading partner.
Inflation globally has proved far stickier than many analysts had expected, so investors may wish to be careful with their assumptions. Inflation, like a weed, has a habit of coming back if monetary policy is loosened before completely under control.
But with sunnier times perhaps ahead, here are five top ASX stocks to consider this quarter.
Top Australian shares to watch
The following five shares represent some of the largest companies on the ASX. The stocks are listed by market cap, from largest to smallest. Although the final stock has a considerably lower market cap than the others, it’s worth keeping an eye on, as it has attracted significant investor interest.
Aneka Tambang Tbk PT DRC (ASX: ATM)
Aneka Tambang Tbk – often shortened to Antam – is one of Indonesia’s largest diversified mining and metals companies, and it trades on the ASX via a Depository Receipt (DRC).
The company is a key player in the global nickel market, which has seen surging demand due to its crucial role in battery production for electric vehicles (EVs). Antam also operates across gold, bauxite, and alumina, offering a diversified commodity profile that taps into multiple industrial growth narratives.
Recent months have seen Antam actively expand its downstream operations through joint ventures with Chinese and South Korean firms, as Indonesia continues to restrict raw ore exports in favour of domestic processing.
With battery-grade nickel becoming a strategic global resource, Antam’s positioning and government backing could make it a standout for investors seeking growth from the clean energy transition, particularly in Asia.
Aneka Tambang Tbk PT DRC has a market capitalisation of $406.51 billion.
Commonwealth Bank of Australia (ASX: CBA)
As Australia’s largest listed company by market capitalisation, Commonwealth Bank (CBA) is a bellwether for the broader financial sector.
Known for its strong retail banking franchise, CBA continues to deliver robust profits and consistent dividends, thanks in large part to its dominant share in home lending and everyday banking. In early 2025, the bank reported a resilient half-year profit despite economic headwinds, supported by stable net interest margins and low bad debt provisions.
CBA has also been ramping up its digital strategy, with CommBank app engagement surging and its venture arm investing in fintechs and climate-aligned startups.
For investors seeking a reliable income stream and long-term exposure to Australia’s banking sector, CBA remains a stalwart. However, ongoing RBA rate movements and softening credit growth may test its earnings momentum in the months ahead.
Commonwealth Bank of Australia has a market capitalisation of $264.98 billion.
BHP Group (ASX: BHP)
BHP needs little introduction – it’s the world’s largest mining company, with operations spanning iron ore, copper, metallurgical coal, and potash.
The mining giant has continued to benefit from China’s stabilising property sector and global infrastructure spending, which have supported demand for its core commodities. Its recent half-year results saw solid operational performance, particularly in iron ore, while its Jansen potash project in Canada is progressing on schedule.
Strategically, BHP has doubled down on future-facing resources, increasing its exposure to copper and potash, both of which are seen as key to electrification and global food security.
The company has also shown fiscal discipline by exiting petroleum and reducing net debt, while still offering attractive shareholder returns. For those seeking a diversified resources giant with a clear transition roadmap, BHP remains a compelling cornerstone investment.
BHP Group Ltd has a market capitalisation of $183.90 billion.
Rio Tinto Ltd (ASX: RIO)
Rio Tinto is another mining heavyweight on the ASX, with a primary focus on iron ore, aluminium, copper and lithium – all critical inputs in global decarbonisation and infrastructure trends.
The company recently delivered stronger-than-expected quarterly production results, led by iron ore volumes from its Pilbara operations, while copper output was boosted by the ramp-up of its Oyu Tolgoi mine in Mongolia.
Sustainability remains high on Rio’s agenda, with recent investments into low-carbon alumina refining technology and efforts to decarbonise its operations through renewable energy. However, the miner also faces scrutiny around heritage and ESG issues, particularly in its Australian and South American operations.
From an investor perspective, Rio’s balance sheet strength, high dividend yield and strategic copper and lithium exposure make it a stock to watch in the evolving commodities landscape.
Rio Tinto Ltd has a market capitalisation of $179.76 billion.
Alcoa DRC (ASX: AAU)
Alcoa Corporation, listed on the ASX as a Depository Receipt, is a global leader in bauxite mining, alumina refining, and aluminium production.
While traditionally cyclical, aluminium has re-entered the spotlight as a material of choice for sustainable construction, automotive, and energy infrastructure – all of which are accelerating in a decarbonising global economy. Alcoa’s ability to operate across the full aluminium value chain gives it a strategic advantage, particularly as supply disruptions and energy price swings impact the market.
In early 2025, Alcoa announced a partnership with Rio Tinto to commercialise a breakthrough zero-carbon aluminium smelting technology known as ELYSIS, which has drawn support from Apple and the Canadian and US governments.
While Alcoa’s earnings remain sensitive to metal prices and energy costs, its focus on innovation and low-carbon production has resonated with investors seeking exposure to green manufacturing and energy transition themes.
Alcoa DRC has a market capitalisation of $10.19 billion.
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