Australian Stocks Fall After Recent Strength

Australian shares dipped 45 points or 0.5% to 8,647 on Tuesday morning trade, ending gains in the prior three sessions and pulling back from a two-week high. Traders booked profits amid caution ahead of domestic CPI data later this week. Inflationary pressures, coming back since mid-last year, have already prompted three rate hikes so far this year. In March, figures hit their highest since September 2023, driven in part by surging fuel costs. Still, a rally in U.S. stock futures capped losses, reflecting hopes for a breakthrough in the U.S.-Iran peace talks. Financials, consumer non-durables, and process industries dragged the ASX 200 lower, amid notable declines in Goodman Group (-3.6%), Genesis Minerals (-1.7%), and Ampol Ltd. (-1.2%). ASX Ltd. tumbled 9.1% after reporting that it expects total expenses to rise between 18% and 21% in FY 2027, driven by higher technology spending, regulatory remediation, and growth investments. The four major banks fell between 0.8% to 1.8%.

The ASX 200 rose 35 points or 0.4% to end at 8,692 on Monday, up for the third session amid a surge in U.S. stock futures as hopes of a deal to reopen the Strait of Hormuz lifted market sentiment, even as President Trump signaled he would not “rush” into a deal. Trump also said he wants Kevin Warsh to independently lead the Fed after a shakeup at the U.S. central bank. However, gains were capped by caution ahead of U.S. PCE data later this week. Locally, Australia's April CPI will be released in the coming days, after March figures hit their highest since September 2023, driven in part by fuel costs. Meanwhile, U.S. stocks will be closed today for a holiday. Most sectors were in the green, led by non-energy minerals, process industries, producer manufacturing, and consumers. Heavyweight BHP Group gained 0.7% while other top performers included Qantas Airways (5.7%), Northern Star Resources (5.4%), and Evolution Mining (4.5%). Three of four major lenders rose between 0.3% to 0.8%.

Australian equities edged up 25 points, or 0.3%, to 8,682 in Monday morning trade, marking a third straight gain as U.S. equity futures rose sharply on signals that a deal to reopen the Strait of Hormuz may be close, though President Donald Trump stressed he would not “rush” into an agreement. Gains remained modest, however, with investors cautious ahead of April CPI data later this week, after March inflation in Australia accelerated to 4.6%, the fastest since September 2023, driven in part by fuel costs. Traders also kept a close watch on U.S. PCE data for signals on inflation and the path of interest rates. Non-energy minerals, producer manufacturing, and process industries advanced, while energy minerals and consumer services lagged. Three of the four major banks posted small rises. Other standout movers included Qantas Airways (5.1%), Northern Star Resources (4.7%), Evolution Mining (4.0%), and Lynas Rare Earths (1.9%).