Australia Shares Track Muted May Finish

The ASX 200 jumped 139 points, or 1.6%, to 8,732 on Friday, erasing the prior session’s weakness with broad-based gains led by electronic tech, non-energy minerals, consumer durables, and financials. Sentiment improved after reports of a U.S.–Iran memorandum extending the truce for 60 days, though President Trump reportedly has yet to approve it. Locally, expectations of further rate hikes eased following a weaker-than-expected headline inflation in April, an unexpected drop in employment, and a decline in household spending. Standouts included BHP (2.9%), Rio Tinto (1.2%), Evolution Mining (4.3%), and Northern Star (3.4%), while the big four banks added 0.2%–0.9%. In contrast, energy stocks fell, with Santos down (-0.5%) and Origin Energy edged down 0.2%. Local equities notched a second straight weekly rise, contributing to back-to-back monthly gains of about 0.8%. Focus now shifts to key domestic releases next week, including Q1 current account, GDP, and April trade data.

Australian shares rose 61 points, or 0.7%, to 8,654 on Friday morning deals, reversing a sharp drop in the prior session following overnight Wall Street gains amid reports the U.S. and Iran had reached a tentative 60-day ceasefire extension and agreed to resume nuclear talks. Broad sector strength underpinned the upturn, led by non-energy minerals, commercial services, producer manufacturing, and consumer durables. BHP Group advanced 1.6%, while Northern Star Resources and Evolution Mining each jumped 4.9%. The big four banks posted modest gains of 0.2% to 0.5%. However, the local market is set to end May slightly lower, down around 0.1% so far, following April’s solid rise, as lingering concerns over the impact of three central bank rate hikes since the start of 2026 have weighed on household spending. Traders now await Australia's private sector credit data for April due later today, along with key releases next week, including Q1 current account and GDP figures.

The ASX 200 tumbled 125 points or 1.4% to end at 8,593 on Thursday, reversing strength in the prior session and marking a one-week low. Sentiment was hit by fresh data showing Australia's household spending fell for the first time in four months in April, highlighting the impact of the RBA’s three interest rate hikes since the start of 2026. Meanwhile, U.S. stock futures moved lower, as news of a fresh US military strike in Iran challenged investor optimism on a near-term peace deal. Still, a solid rebound in Q1 capital expenditure helped limit losses, mainly lifted by stronger spending on plant machinery. In addition, softer-than-expected April inflation eased concerns that the RBA could maintain a tightening bias. Losses were broadly spread, led by falls in mining, consumer, financial, and healthcare stocks. The four major banks dropped between 1.4% and 2.2%. Other notable laggards included BHP Group (-1.3%), Northern Star Resources (-7.4%), and Evolution Mining (-7.3%).