ASX 200 Surges, Logs 2% Weekly Jump

The ASX 200 soared 171 points, or 2%, to end at 8,604 on Friday, marking its largest single-day rise since April 8 and hitting a one-week high. The rebound erased earlier weakness, leaving the index 2.1% higher for the week after Wall Street’s rally the day before. Sentiment was boosted by easing U.S.–Iran tensions, with President Trump hinting a peace deal could be signed this weekend, though Tehran stressed no final decision was reached. Locally, softer jobs and inflation data bolstered hopes the central bank will pause next week after delivering three rate hikes earlier this year. Gold miners surged 5.6%, led by Evolution Mining (6.7%) and Northern Star (5.2%), while BHP and Rio Tinto advanced 3.1% and 2.7%. The big four banks added between 1% and 1.7%. Energy lagged, with Santos off 0.6%. Woodside eased 1.3% after invoking its pre-emptive right to acquire PetroChina’s 10.67% stake in the Browse gas fields off Western Australia, effectively blocking a deal with Japan’s Inpex.

Australian stocks surged 140 points, or 1.6%, to 8,773 on Friday morning deals, reversing weakness in the prior session and hitting their highest level in a week. The rally tracked overnight solid gains on Wall Street after President Trump signaled the U.S. was close to sealing a deal with Iran, with a signing possible this weekend in Europe alongside VP JD Vance. Optimism also mounted that the Reserve Bank could pause cash rate hikes at next week’s policy meeting after three hikes this year. Meanwhile, consumer inflation expectations eased to 5.5% in June, the lowest since March. Broad-based strength lifted all sectors, led by non-energy minerals, process industries, producer manufacturing, and financials. The big four banks advanced between 0.9% and 1.6%. Standout movers included BHP Group (2.6%), Evolution Mining (6.2%), PLS Group (5.2%), and Qantas Airways (4.5%). With weekly gains of about 1.7% so far, local markets are on track for a steep rise after weakness in the prior period.

The ASX 200 edged down 20 points, or 0.2%, to close at 8,633 on Thursday, reversing gains in the prior session as weakness in consumer durables, logistics, and financials weighed on sentiment. Concerns over Australia’s slowing economy also grew after Westpac said home loan applications averaged 30,000 per month in the fiscal third quarter starting April, down from 33,000 in the prior quarter, underscoring the impact of global instability and domestic tax changes. Still, early weakness was trimmed amid stronger U.S. stock futures, following Washington’s announcement that strikes against Iran had concluded. Traders anticipated next week’s Reserve Bank meeting, hoping for a pause after three rate hikes this year. Meanwhile, consumer inflation expectations fell to 5.5% in June, the lowest since March. The four major banks fell between 1.1% and 2.1%, while notable laggards included Sigma Healthcare (-2.9%), Goodman Group (-2.8%), South32 (-2.3%), and Northern Star Resources (-1.2%).