Australia Stocks Inch Higher Ahead of GDP Data

Australian shares edged up 14 points, or 0.2%, to 8,739 in early Wednesday trade, snapping two sessions of muted activity after Wall Street closed mostly higher overnight. Sentiment improved following remarks from President Trump and Secretary of State Marco Rubio, who signaled Washington remained engaged in talks with Tehran over a potential deal to halt the Middle East conflict. Gains, however, were limited by fresh data showing industry conditions stayed weak in Australia during May, reflecting an energy crisis and broader economic uncertainty. Investors also turned cautious ahead of Q1 GDP figures due later today, with expectations for slower growth amid global headwinds and continued monetary tightening. Sector strength came from non-energy minerals, producer manufacturing, and process industries, while consumer durables, healthcare, and commercial services weighed. Notable movers included BHP Group (2.3%), Northern Star Resources (4.8%), and Mineral Resources (2.1%).

The ASX 200 ended little changed at 8,724 on Tuesday, recovering from early weakness as gains in tech services, healthcare, and non-energy minerals offset losses in retail trade, process industries, and financials. Traders anticipated Australia's GDP readings for Q1, due on Wednesday, seeking cues on the central bank's monetary policy path ahead of its meeting later this month. Meanwhile, fresh data released today showed business stocks in Australia rebounded in Q1 after falling in the prior two periods. However, corporate profits during the period fell after solid growth in Q4. Meanwhile, Q1 current account deficit hit a record peak, underperforming forecasts. The four major banks fell between 0.2% and 3.9%, while other notable losers included PLS Group (-2.8%), Woodside Energy (1.8%), and Aristocrat Leisure (1.3%). On the upside, Northern Star Resources jumped 13.6% after activist investor Elliott Investment disclosed an over AUD 1 billion stake and called for a strategic review.

Australian equities fell 81 points or 0.9% to 8,648 in Tuesday morning trade, marking a second straight drop as renewed uncertainty over U.S.–Iran peace talks triggered a sharp drop in U.S. futures. Sentiment was further weighed by caution ahead of key domestic releases, including April building permits and Q1 business inventories and gross profits later today, followed by GDP and trade data in coming days. In top trading partner China, manufacturing growth slowed in May, according to a private survey, while official data pointed to stagnation, underscoring persistent headwinds from the Middle East conflict. Sector performance was broadly negative, with process industries, logistics, retail trade, and financials among major laggards. The big four banks slipped between 1.7% and 1.9%, while notable decliners included Scentre Group (-5.3%), GPT Group (-3.5%), Qantas Airways (-2.4%), and Medibank Private (-1.8%).