Australia Equities Down Slightly to Begin New Month

Australian stocks fell 23 points, or 0.3%, to 8,707 in early trade on the first day of June, reversing the prior session’s rally as caution set in ahead of key domestic releases later this week, including April trade data as well as Q1 current account and GDP. The economy is expected to slow on a quarterly basis amid global headwinds from the Middle East conflict. Still, losses were cushioned by Friday’s U.S. gains on renewed hopes for progress toward a peaceful resolution to the Iran war. Sector declines were led by consumer non-durables, communications, healthcare, and retail trade, while strength in commercial services and non-energy minerals helped cap the fall. Notable laggards included QBE Insurance (-2.0%), Woolworths Group (-1.8%), and Santos Ltd. (-1.2%). Traders await May job ads due later today, alongside China’s private manufacturing PMI, a key gauge from Australia’s top trading partner.

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.