Australian Stocks Extend Weekly Gains

The S&P/ASX 200 ended roughly 0.1% lower on Friday, snapping a four-session winning run, but still gained 1.8% for the week, its second weekly advance, as strong corporate earnings underpinned sentiment, with banks helping limit the day’s losses. Upbeat results came from heavyweight names such as BHP and National Australia Bank, while investors now turn their attention to upcoming earnings from Woodside Energy, Woolworths, Coles and Qantas. During the week, stocks that exceeded expectations were rewarded, with QBE Insurance Group surging sharply, while disappointing results weighed on peers such as Suncorp Group. On the day, banking stocks led the advance, up 0.7%, while tech shares and heavyweight miners mostly weighed. The world’s largest iron ore producer, Rio Tinto, finished 3.1% lower, after it reported annual earnings that fell short of expectations a day earlier, while logistics software provider WiseTech Global dropped 3.8%.

The S&P/ASX 200 slipped 0.2% to around 9,060 in early Friday deals, snapping a four-session winning streak, weighed down by losses in heavyweight miner Rio Tinto. The world’s largest iron ore producer tumbled as much as 3% after it reported annual earnings that fell short of expectations a day earlier. Even so, the broader mining sub-index rose 0.4%, supported by strength in other major names. BHP climbed about 1%, while gold producers rallied amid higher bullion prices driven by heightened geopolitical tensions. QBE Insurance also jumped after exceeding full-year profit forecasts on improved claims and investment income. The financial sector hovered near record levels, as weakness in Commonwealth Bank offset gains in Westpac and ANZ. Meanwhile, local tech stocks mostly weighed on the index, retreating 2.6%, mirroring overnight weakness on Wall Street. Still, the benchmark index is headed for its second weekly gain, as upbeat corporate earnings season continued to propel the market.

The S&P/ASX finished 0.9% higher to a four-month high of 9,086 on Thursday, rallying for a fourth consecutive session, as heavyweight banks and commodity-linked stocks lifted the market. The financial sector jumped 1.4% to an all-time high, as National Australia Bank extended gains after reporting stronger quarterly profits. The other “Big Four” lenders followed, climbing over 2% each. Additionally, heavyweight miners gained 1.4%, boosted by stronger copper prices and a rebound in tech stocks. BHP, the world’s top copper producer, rose 1.8%, while Rio Tinto added 2% after beating full-year estimates. Gold stocks and energy firms also surged after bullion and oil prices jumped on rising geopolitical tensions. Meanwhile, a strong January jobs report boosted the risks of monetary policy tightening by the Reserve Bank of Australia at its May meeting. Markets now price in an 80% chance of a rate hike in the 3.85% cash rate, from 70%, with a 4.10% increase now fully priced in by August.