Australia Stocks Edge Down as Week Opens

Australian equities slipped in early Monday trade, easing 20 points or 0.2% to 8,825 and unwinding part of the prior session’s rally. The retreat pulled the market back from a one-week high as investors booked profits and turned cautious ahead of fresh job ads data and the June inflation gauge due later today. In top trading partner China, June CPI and PPI figures are expected later this week, with May showing steady headline inflation but faster producer price gains. Concerns over further cash rate hikes also resurfaced, underscored by the Reserve Bank’s June minutes and Governor Michele Bullock’s recent remarks. Still, a modest rise in U.S. equity futures capped the weakness following a strong week on Wall Street that drove the Dow Jones to record highs. Industrial services, consumer durables, and manufacturing drove the decline in local markets. The four major banks lost between 0.3% and 0.9%, while Genesis Minerals (-6.7%), Suncorp (-3.5%), and Greatland Resources (-2.6%) fell.

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.