ASX 200 Ends Muted, China GDP in Focus

Australian stocks slipped 40 points, or 0.4%, to 9,040 on Tuesday morning, the first trading day of September, extending prior losses after Wall Street closed lower overnight as rising oil prices and U.S.–Iran clashes pushed Treasury yields toward 4.7%, weighing on equities. Locally, caution also lingered ahead of Q2 GDP data due Wednesday, with growth expected to remain sluggish after the weakest pace in a year last quarter. Several releases are slated today, including July flash building permits, Q2 current account, and August commodity prices, while China’s private manufacturing PMI will follow later. Losses were led by retail trade, commercial services, and transport, though gains in energy minerals and consumer durables helped cap the decline. Three of the four big banks eased modestly, while notable laggards included REA Group (-4.4%), Westfarmers Ltd. (-3.2%), Woolworths (-2.5%), and Fortescue (-2.2%). In contrast, Woodside Energy rose 1.1%, and Santos gained 1.5%.

The ASX 200 slipped 16 points or 0.2% to end at 9,076 on Monday, the final trading day of August, reversing prior gains as U.S. stock futures fell after oil prices spiked on fresh U.S. strikes against Iranian rocket launchers near the Strait of Hormuz. Hawkish remarks from Fed Chair Warsh added to rate-hike jitters. Locally, Australia's private sector credit rose 0.6% in July, the weakest in five months. Meanwhile, services activity in top trading partner China stayed soft in July despite a rebound in manufacturing output. Losses in tech, non-energy minerals, and consumer names offset strength in communications and financials. Heavyweights BHP and Rio Tinto fell over 2%, while Northern Star Resources and Evolution Mining slid 5.2% each. Star Entertainment lost 3.9% despite narrowing its annual loss. In contrast, the big four banks rallied. The index logged its fifth straight monthly gain, up 1.1%, lifted by bargain hunting. Traders now eye Q2 GDP and July trade data later this week.

Australian equities were little changed in early Monday trade, hovering near 9,090 after the prior session’s rise. Traders braced for a busy data slate, including Q2 business inventories, company gross profits, July private credit, and the monthly inflation gauge, with Q2 GDP and July trade figures due later this week. China’s July PMI readings were also awaited. Meanwhile, U.S. futures weakened after Fed Chair Warsh’s hawkish remarks bolstered bets on a September rate hike, while reports said the U.S. struck Iranian rocket launchers preparing to mine the Strait of Hormuz, ending weeks of calm. Declines in tech, industrials, and non-energy minerals nearly offset gains in financials and energy minerals. The big four banks rose 1.6%–2.2%, with Ampol Ltd. up 1.6% and Whitehaven Coal adding 1.5%. On the downside, BHP Group fell 1.7%, along with Northern Star Resources (-4.6%). Still, markets are on track for a fifth straight monthly gain, up about 1.4% so far, supported by bargain hunting.