Australian Shares Up Over 1%

The S&P/ASX 200 inched down 10 points, or 0.1%, to end at 8,631 on Friday, reversing early gains following a modest rise in the prior session. Sentiment weakened as U.S. stock futures fell sharply, as President Trump departed Beijing today after two days of talks with his Chinese counterpart, Xi Jinping. For the week, markets lost 1.3%, swinging from a prior gain amid persistent inflation fears. Meanwhile, Australia’s 2026/27 budget has outlined curbs on negative gearing to spur new housing investment, raising fears of slower mortgage growth. Financials fell sharply, though Commonwealth Bank rose 1.9% after its steep drop earlier. Miners also retreated on softer iron ore and copper prices, with BHP down 2.6% and Rio Tinto off 3.2%, easing from record highs hit earlier in the week. Other laggards included PLS Group (-5.8%), Evolution Mining (-5.5%), and South32 Ltd. (5.1%). Investors now brace for flash PMI readings for May, due next week, along with RBA minutes and April jobs data.

Australian shares rose 32 points, or 0.4%, to 8,673 in Friday’s morning session, marking gains for a second day after Wall Street hit fresh records overnight. Optimism around the US-China summit in Beijing helped ease lingering concerns over the Middle East conflict, while bargain hunters continued to step in following recent losses that dragged the ASX 200 to a five-week low. Broad-based strength was seen across sectors, led by electronic technology, industrial services, and logistics. The big four banks advanced between 0.5% and 3.2%, with notable moves from Computershare (2.8%), QBE Insurance (2.1%), and Woolworths (1.2%). However, the ASX 200 index remains on track to finish the week lower, down about 0.8% so far, as persistent domestic inflation worries weigh on sentiment. Analysts noted the 2026/27 federal budget offered little to alter the Reserve Bank’s near-term policy outlook, keeping investors cautious despite the rebound.

Australia’s S&P/ASX 200 edged up to close at 8,641 on Thursday, snapping a four-session losing streak as gains in consumer durables, process industries, and industrial services lifted sentiment. Optimism improved after President Donald Trump, speaking at a Beijing summit with Xi Jinping, said U.S.–China ties would become “better than ever before,” with talks set to cover trade, tariffs, Taiwan, and Iran through Friday. Locally, focus turned to the 2026/27 federal budget. Commonwealth Bank analysts noted sizeable savings alongside substantial new spending, but judged the fiscal plan unlikely to shift the Reserve Bank’s near-term policy outlook or meaningfully ease inflation. Three of the big four banks advanced, while BHP Group (1.1%), Macquarie (2.8%), and Insurance Australia Group (3.3%) also strengthened. In contrast, Lynas Rare Earths slumped 10.4% as investors unwound the geopolitical premium in critical minerals amid renewed U.S.–China diplomatic engagement.