Australia Stocks Edge Up as Week Starts

Australia’s ASX 200 rose 59 points, or 0.7%, to end at 8,823 on Monday, building strength from the prior session amid a sharp rise in U.S. stock futures as Washington and Tehran reportedly agreed to halt hostilities and resume peace talks. Sentiment was also lifted by strong growth in China’s industrial profits over the first five months of 2026, highlighting resilience in Australia’s key trading partner. However, caution emerged ahead of China’s June PMI data later this week, both from officials and a private survey. Meanwhile, the Reserve Bank’s June minutes will also be due, with investors wary that the central bank may retain its tightening bias to rein in inflation. Commercial services, consumer non-durables, and healthcare drove the gains. Strong iron ore prices supported BHP Group (1.4%) and Fortescue (2.4%). Ramelius Resources climbed 2.3% after agreeing to sell its Edna May Gold Hub. Neuren Pharmaceuticals surged 36.1% on EU approval for its Rett syndrome drug.

Australian equities added 18 points or 0.2% to 8,778 in Monday morning trade, extending prior-session gains as U.S. futures strengthened after Washington and Tehran agreed to halt hostilities ahead of peace talks this week over the Strait of Hormuz and other issues to end the war. In China, Australia's largest trading partner, industrial profits surged 18.8% yoy in January–May, underscoring the AI-driven investment boom and policy support for advanced industries. However, caution lingered ahead of Chinese PMI data later this week and the Reserve Bank’s June meeting minutes, with investors wary of a hawkish stance following strong May employment figures. Sector gains were led by commercial services, consumer services, and healthcare, partly offset by weakness in transport and utilities. Notable movers included Xero Ltd. (4.6%), REA Group (2.3%), Evolution Mining (1.9%), and Aristocrat Leisure (1.7%). Meanwhile, two of the four major banks posted modest rises.

The ASX 200 edged up 16 points, or 0.2%, to close at 8,764 on Friday, clawing back ground lost in the prior session as process industries, retail trade, and transport stocks lent support. Gains were modest, though, with sentiment fragile after Asian markets weakened and U.S. futures slipped on renewed doubts over a Middle East peace deal following an overnight tanker attack near Oman. Three of the big four banks rose modestly. Rising copper and gold prices supported miners, with BHP up 0.8% and Rio Tinto 2.2%. Gold producers Northern Star and Evolution Mining jumped about 3% each as easing fears of an imminent U.S. rate hike lifted bullion. However, the local market fell 0.7% for the week, reversing strength in the prior two sessions, as resilience in recent data stoked concern that the RBA may tighten further to rein in inflation. Traders also turned cautious ahead of China’s PMI data next week and the RBA’s June meeting minutes, following its pause after three hikes since January.