ASX 200 Logs Worst Week in Near A Month

Australia's ASX 200 lost 61 points, or 0.7%, to finish at 8,625 on Friday, marking its second straight decline as fading hopes for a U.S.–Iran peace deal weighed on sentiment. Meanwhile, U.S. stock futures weakened as investors cautiously awaited May jobs data for clues on labor conditions and Fed policy. The local market slipped 1.2% for the week, its first drop in three and the worst in nearly a month, amid caution ahead of the Reserve Bank’s policy decision later this month. Non-energy minerals led losses, followed by energy, financials, and consumer non-durables. Gold stocks fell 1.9% despite firmer bullion, with Evolution Mining down 3.0%. Lynas Rare Earths slid 2.9% after naming veteran Pol Le Roux interim CEO from June 30. The big four banks lost between 1.1% and 1.6%. Energy stocks also dropped after recent gains, as oil prices eased. In contrast, Megaport surged 11.3% after trading resumed, announcing four AI infrastructure contracts and plans to build an inference cloud.

Australian shares fell 38 points or 0.4% to 8,648 in early Friday trade, extending weakness from the prior session as U.S. equity futures softened after a sharp sell-off in Wall Street tech stocks overnight. Little progress in U.S.-Iran peace talks also weighed on investor sentiment. The local market is on track for its first weekly decline in three weeks, down about 1% so far, with caution building ahead of the Reserve Bank’s policy decision later this month. Meanwhile, recent data showed inflation remained elevated at 4.2% in April, above the 2–3% target, while Q1 GDP growth slowed markedly. Still, losses were offset by April trade data indicating a return to a surplus in Australia, lifted by an export recovery and weaker imports. Non-energy minerals, energy minerals, and consumer non-durables led sectoral weakness. Notable laggards included BHP Group (-2.3%), PLS Group (-3.0%), South32 Ltd. (-2.7%), and Evolution Mining (-2.0%). The four big banks also slipped between 0.5% and 0.9%.

The ASX 200 fell 100 points, or 1.1%, to finish at 8,686 on Thursday, shifting from gains in the prior session and retreating from a one-month peak as profit-taking set in. Meanwhile, geopolitical tensions in the Middle East resurfaced after Tehran struck Kuwait’s airport, and U.S. forces hit targets near the Strait of Hormuz. Locally, the Reserve Bank of Australia signaled vigilance as headline inflation held at 4.2% in April, above its 2–3% band, and Q1 GDP growth slowed sharply. Still, losses were cushioned by April trade data showing Australia returned to surplus, driven by a rebound in exports and weaker imports. Commercial services, non-energy minerals, and manufacturing drove the losses. BHP and Rio Tinto shed 3.2% and 3.7%, their weakest since mid-May after record highs a day earlier. Tech names tracked Nasdaq weakness, with WiseTech down 5% and Xero off 3%. However, energy stocks bucked the trend as oil prices rose, lifting Woodside Energy (0.3%) and Santos (0.8%).