Australia Stocks Trade Notably Lower

Australian equities fell 75 points or 0.9% to 8,643 in early Thursday trade, erasing prior-session gains as investors weighed mixed signals from U.S.–Iran talks. Secretary of State Marco Rubio noted progress toward a deal, but President Donald Trump stressed unresolved issues remain. Domestic caution also grew ahead of key releases, including Q1 capital spending and April household spending later today, as well as private credit growth on Friday. Still, losses were cushioned by a softer-than-expected April inflation print, which tempered expectations for further rate hikes. At the same time, Q1 construction output proved resilient, climbing 3.4% — the fastest pace in three years. Sector breadth was weak, with declines across electronic tech, consumers, non-energy minerals, and financials. Among major decliners were Northern Star Resources (-3.5%), Brambles Ltd. (-3.1%), and Lynas Rare Earths (-2.6%). The four big banks slipped between 0.9% to 1.3%.

The ASX 200 rose 0.69% to close at 8,718 on Wednesday, reversing earlier losses and reaching its highest level in more than two weeks, as cooler-than-expected inflation data eased concerns about additional interest rate increases. The headline annual inflation rate ticked down to 4.2% in April from 4.6% previously, below market expectations of 4.4%. Meanwhile, the annual trimmed mean CPI, a key gauge of underlying inflation, matched expectations at 3.4% and reached its highest level since September 2024, while the weighted median CPI held steady at 3.5%. The latest inflation figures reinforced expectations that the Reserve Bank of Australia could keep interest rates unchanged in June, while market pricing for an August rate hike fell to 33.7% from 45% prior to the data release. The financial sector edged up 0.1%, with Commonwealth Bank rising 0.31%. Other notable gainers included BHP Group (1.54%), Newmont Corporation (1.26%), Wesfarmers (1.41%), and Goodman Group (3.73%).

Australian shares slipped on Tuesday, with the ASX 200 down 34 points, or 0.4%, to close at 8,658, snapping a three-day advance and pulling back from a two-week peak, as traders secured profits ahead of April CPI data due Wednesday. Headline inflation is expected to ease to 4.4% from March’s 2-1/2-year high of 4.6%, though still above the Reserve Bank’s 2–3% target. Meanwhile, the trimmed mean is seen edging up to 3.4% from 3.3%. Selling pressure hit logistics, consumer non-durables, consumer services, and energy minerals, partly offset by gains in consumer durables and industrial services. ASX Ltd. tumbled 12%, its steepest fall in over a decade, on tech-driven cost warnings. Two of the big four banks fell between 0.2%–0.5% while other notable losers included Aristocrat Leisure (-3.4%), Insurance Australia Group (-2.1%), and Challenger Ltd. (-4.8%).