Australia Shares Follow Wall Street Lower

Australian stocks slipped 110 points, or 1.3%, to 8,675 in Thursday's morning session, reversing gains from the prior session after losses on Wall Street overnight amid renewed tensions in the Middle East. Iran reportedly launched a drone attack on Kuwait Airport following a skirmish with the U.S. Local markets retreated from a one-month high, with traders cautiously anticipating April trade data later today. In March, Australia saw the first trade gap since December 2017, as exports fell while imports jumped to a record high. Most sectors logged steep losses, with commercial services, non-energy minerals, and producer manufacturing among major laggards. Still, strength in consumer non-durables and energy minerals helped limit further losses. The four big banks dipped between 1.2% and 1.5%. Other notable decliners were mining giant BHP Group (-3.3%), Northern Star Resources (-5.6%), Lynas Rare Earths (-5.4%), and Evolution Mining (-3.9%).

Australia's ASX 200 rose 61 points, or 0.7%, to close at 8,786 on Wednesday, recovering from subdued trade in the prior two sessions and reaching its highest level in a month. Meantime, a weaker Q1 GDP print reinforced views that the central bank may pause further policy tightening after delivering three rate hikes so far this year amid persistent inflation pressures. Gains were led by producer manufacturing, non-energy minerals, and process industries, which more than offset weakness in consumer, healthcare, and commercial services stocks. BHP Group jumped 2.5% to a record high as copper and iron ore prices increased. Rio Tinto gained 1.9%, also reaching a fresh peak. Northern Star Resources surged 4% after Morningstar highlighted the possibility of a sale of the gold miner. Fuel retailer Ampol added over 2% after Australia's competition regulator approved its acquisition of EG Australia. Financial stocks also advanced, with the four major banks posting gains of between 1.0% and 1.7%.

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%).