ASX 200 Climbs to One-Week High, Up 0.9% Weekly

The ASX 200 surged 120 points, or 1.4%, to end at 8,844 on Friday, snapping back from a muted prior session to an over one-week peak. Sentiment improved as stronger U.S. stock futures offset Wall Street’s mixed lead Thursday ahead of the Independence Day holiday. Traders also shrugged off the Reserve Bank's tightening concerns, focusing instead on easing Middle East tensions and the reopening of the Strait of Hormuz, as well as an upward revision in domestic private-sector activity in June. Gains spread across most sectors, led by consumer durables, healthcare, non-energy minerals, and process industries. Gold stocks jumped 7.9% after bullion rallied on softer U.S. payrolls, with Northern Star jumping 10.6% and Evolution Mining up 8.6%. Heavyweights BHP rose 1.6% and Computershare 3.0%, while the big four banks added 0.4%–2.4%. In contrast, Suncorp slumped 4.1% after trimming its growth outlook on weaker demand. For the week, the benchmark rose 0.9%, erasing prior losses.

Australian stocks climbed 82 points or 0.9% to 8,806 on Friday morning deals, rebounding from a subdued session the day before amid stronger U.S. equity futures after Wall Street ended mixed overnight after weak U.S. jobs data cooled rate-hike concerns. Meanwhile, an upward revision in Australia's private sector activity for June boosted sentiment, lifted by renewed growth in services. Gains, however, were capped by worries about continued tightening in cash rates, as signaled by the Reserve Bank's June meeting minutes and recent remarks from Governor Michele Bullock. Sector strength included consumer durables, healthcare, retail, and process industries. Three of four major banks rose between 0.3% and 1%. Mining giant BHP Group edged up 0.3% while other notable performers were Northern Star Resources (7.0%), Evolution Mining (4.8%), and Greatland Resources (2.6%). For the week, markets are on track to edge higher, up around 0.2% so far, reversing from a modest drop in the prior period.

The ASX 200 closed little changed at 8,724 on Thursday after trading lower in early deals, with gains in consumer services, healthcare, and financials countered by losses in retail trade, logistics, and energy minerals. Traders weighed Australia’s May trade data, which unexpectedly showed a deficit as exports fell while imports rose. Markets also pared back expectations for further rate hikes in Australia as easing inflation risks followed the de-escalation of Middle East tensions and the reopening of the Strait of Hormuz. Meanwhile, U.S. stock futures were mainly lower after a weak lead from Wall Street Wednesday, ahead of the key nonfarm payrolls release. Northern Star Resources jumped 5.3% after naming a new CEO and posting preliminary annual gold sales that met revised guidance. Meanwhile, the four big banks rose between 0.4% and 3.5%. On the downside, laggards included SGH Ltd. (-4.6%), Westfarmers Ltd. (-4.4%), Reece Ltd. (-3.3%), and Coles (-1.8%).