Australian Shares Dip as Tech Stocks Drag

The ASX 200 rose 82 points, or 0.9%, to end at a record high of 9,228 on Wednesday, marking its fourth session of gains. Sentiment was buoyed by a sharp rise in U.S. futures after Wall Street’s record close Tuesday, as hopes for a diplomatic resolution to the war in Iran drove oil lower for a third day and pulled global bond yields down. Meanwhile, July services activity in Australia showed its strongest growth in six months. However, strength was capped by softer growth in manufacturing and services sectors in China, Australia's largest trading partner. Traders also stayed cautious ahead of trade data from both economies later this week. Sector gains were broad, led by non-energy minerals, tech, manufacturing, and healthcare. BHP and Rio Tinto rose 3.3% and 2.3% on copper revenue, while gold producers rallied with bullion, lifting Evolution Mining (6.3%) and Northern Star Resources (5.8%). In contrast, the big four banks slipped between 0.4% and 1.4%, and energy stocks also slipped.

Australian stocks advanced 44 points or 0.5% to 9,190 on Wednesday morning deals, rising for the fourth session and hovering at their highest in five months. A solid rise in U.S. equity futures lifted sentiment after an extended rally on Wall Street overnight that pushed the broad market index to a record high, helped by upbeat earnings and speculation of a U.S.–Iran deal to reopen the Strait of Hormuz. Locally, July services activity posted its strongest growth in half a year, with the index revised upward from its flash reading. Still, caution ahead of trade data from Australia and main trading partner China capped gains. Meanwhile, July industry conditions showed ongoing weakness in manufacturing and construction. Tech, non-energy minerals, healthcare, and process industries led advances, with early standouts from South32 (3.5%), Northern Star Resources (2.8%), Qantas Airways (2.6%), and Evolution Mining (2.0%). Conversely, most major banks were subdued, and energy names lagged.

Australia's ASX 200 extended its winning streak to a third straight session on Tuesday, climbing 127 points, or 1.4%, to close at 9,149, its highest level since early March. Sentiment improved amid stronger U.S. stock futures following Wall Street's rally Monday, supported by easing crude oil prices that helped boost risk appetite. Locally, personal spending rose 0.8% mom in June, easily exceeding the consensus of 0.2%. However, gains were capped by caution ahead of key trade data due later this week from both Australia and its largest trading partner, China. Buying was broad-based, with tech, logistics, and healthcare leading the gain. The big four banks rose between 1.7% and 2.7% after Morgan Stanley said the sector was poised to log strong earnings. Charter Hall Infrastructure REIT jumped 8.6% after reporting a 12.6% rise in annual operating earnings. Tech stocks tracked their U.S. peers higher, with Xero (3.5%), Technology One (3.3%), and WiseTech Global (3.0%) posting solid gains.