Australian Shares Log 3-Session Gains

The ASX 200 eased 63 points, or 0.7%, to close at 8,702 on Thursday, snapping recent gains as U.S. stock futures fell amid concerns over more Fed tightening after last week’s first rate hike since 2023. Locally, traders weighed the risk of a hawkish move from the Reserve Bank of Australia at next week’s meeting amid stubborn inflation. Still, markets trimmed early weakness after fresh data showed unemployment edged up to 4.6% in August, slightly above consensus. Governor Bullock earlier noted that joblessness in the 4.5%–5.0% range could help restrain inflation. Manufacturing, non-energy minerals, and commercial services lagged, partially offset by strength in energy minerals and logistics. A stronger U.S. dollar and softer copper weighed on resources, with BHP and Rio Tinto down 1.8% and 1.2%. The big four banks fell 1.0%–1.9%, while other notable decliners included PLS Group (-6.1%) and HUB24 (-3.5%). Energy stocks bucked the trend, lifted by Santos (2.1%) and Woodside Energy (1.5%).

Australian stocks plunged 116 points or 1.3% to 8,649 in early deals on Thursday, reversing modest gains in the previous three sessions as Wall Street’s overnight losses spilled into local markets. Surging U.S. bond yields, inflation fears, and renewed Middle East tensions that lifted oil prices above USD US103 pressured sentiment. Caution also mounted ahead of August labor data later today after July’s surprise uptick in unemployment and a decline in employment. Meanwhile, RBA Assistant Governor Sarah Hunter warned cash rates may need to rise again if inflation persists, reinforcing expectations from the four major banks that the central bank will hike next week. All sectors retreated, led by manufacturing, non-energy minerals, and financials. The big four banks fell 1.7%–1.9%, while steep losses hit PLS Group (-4.9%), Lynas Rare Earths (-4.6%), and Nextdc (-3.5%). Traders now anticipate a bilateral summit between U.S. President Donald Trump and China's leader Xi Jinping later today.

The ASX 200 ended almost flat at 8,765 on Wednesday, as strength in consumer durables, industries, and non-energy minerals nearly offset declines in energy, tech, and healthcare. Local markets reversed early gains, with traders bracing for Australia's labor market data due Thursday and digesting September flash PMI showing slower services growth and weakness in factory output. Meanwhile, U.S. stock futures edged higher after Wall Street’s near-record close Tuesday, aided by easing oil prices on momentum toward ending the war in the Middle East. Attention turned to Thursday’s bilateral summit between President Trump and China’s Xi Jinping, with hopes for trade progress growing despite fragile ties. BHP jumped 1.4%, and Rio Tinto rose 0.8% on firmer copper as China stocked up ahead of holidays. Other top movers included Northern Star Resources (4.0%), Evolution Mining (2.2%), and Goodman Group (3.0%). Energy stocks dipped, however, weighed by Woodside Energy (-2.0%) and Santos (-1.8%).