Australian Stocks Lackluster Ahead of PMI Readings

Australian equities were little changed on Tuesday, with the S&P/ASX 200 hovering around 8,948 in early trade, being subdued for a second session as investors awaited April PMI data due Thursday and tracked persistent U.S.–Iran tensions. Meanwhile, Canberra moved to cushion geopolitical risks by underwriting purchases via Export Finance Australia, launching a conservation campaign, and sending the prime minister recently on diplomatic visits to Singapore, Brunei, and Malaysia. Gains in commercial services, consumer durables, and producer manufacturing offset declines in healthcare, utilities, and energy minerals. Viva Energy rose 2.6% as it worked to restore output at its fire-damaged Geelong refinery, targeting more than 90% capacity within weeks. Other gainers included Codan (2.6%), Xero (2.0%), and Nextdc (1.6%), while Lynas Rare Earths (-2.7%), Evolution Mining (-1.2%), and Qantas (-0.7%) slipped.

The S&P/ASX 200 was little changed on Monday, closing around 8,953 following weakness in the prior two sessions, with gains in consumer durables, retail trade, and logistics offsetting declines in energy minerals and healthcare. Traders continued to follow rapid geopolitical developments in the Middle East, following the U.S. move to seize an Iranian-flagged cargo ship in the Gulf of Oman after it reportedly attempted to breach a naval blockade. In top trading partner China, the central bank kept its benchmark loan prime rates unchanged for an 11th straight month in April, in line with estimates. On the corporate front, Viva Energy said it aims to lift production of diesel, jet fuel, and gasoline to over 90% of capacity within weeks after a fire damaged part of its Geelong refinery in southeastern Australia last week. Genesis Minerals (2.3%), Regis Resources (1.9%), and Bluescope Steel (1.3%) advanced while South32 Ltd. (-3.5%), Woodside Energy (-2.8%), and pro Medicus (-2.4%) lagged.

Australian stocks slipped 32 points or 0.4% to 8,917 on Monday morning trade, down for the third straight session amid a sharp drop in U.S. equity futures following renewed tensions between Washington and Tehran. President Trump said Sunday that a U.S. Navy destroyer disabled and seized an Iranian cargo ship in the Gulf of Oman, escalating friction as Iran denounced the ongoing U.S. naval blockade as a breach of the ceasefire. Traders also turned cautious ahead of the monthly lending rate fix in top trading partner China later today, and Australia’s PMI data in the coming days. At the same time, concerns about Australia's inflation persisted. Energy minerals, non-energy minerals, healthcare, and consumer non-durables led the weakness, though gains in process industries and retail trade helped cap declines. The big four banks fell between 0.5% and 3.1%. Other major laggards were PLS Group (-5.1%), Lynas Rare Earths Ltd. (-2.5%), Woodside Energy (-1.9%), and BHP Group (-1.0%).