Australian Stocks Lift Modestly as Week Begins

The ASX 200 finished little changed at 8,791 on Monday, pausing after two sessions of weakness. Energy minerals, consumer services, and non-durables gained, offset by declines in tech, healthcare, and non-energy miners. Investors stayed cautious ahead of Australia’s June labor market data, and July flash PMIs later this week. Meanwhile, geopolitical tensions weighed as U.S.–Iran conflict widened with strikes on Iranian civil infrastructure. In main trading partner China, the central bank held key lending rates steady for a 14th straight month in its July fixing, in line with estimates, as policymakers sought to balance growth support against currency stability. Energy names rose, with Woodside Energy and Santos up 1.5% and 1.7%, respectively. Meanwhile, South32 jumped 4.2%, and Ampol Ltd. added 1.3%. On the downside, gold stocks fell, dragged by Evolution Mining (-1.8%) and Northern Star Resources (-0.9%). Among banks, two of the big four eased between 0.2% and 0.5%.

Australian shares inched up 24 points or 0.3% to 8,820 in early trade on Monday, reversing weakness in the prior two sessions amid strength in energy minerals, consumer services, and consumer non-durables. Firmer S&P and Nasdaq futures also lent support after Wall Street’s Friday slide due to unease over Chinese AI breakthroughs, which stirred doubts about the sustainability of this year’s tech-driven rally. Traders kept an eye on the monthly lending rate fix later today in top trading partner China. Locally, labor data due this week will test sentiment after May’s robust jobs growth contrasted with a jobless rate near a four-year high. South32 rose 0.5% after topping annual production guidance. BHP Group added 0.2%, while the big four banks rose between 0.4% and 0.9%. Energy stocks strengthened as the U.S. started a ninth day of attacks against Iran, boosting Woodside Energy (1.7%) and Santos (1.5%). In contrast, gold miners lagged, with Northern Star down 1.4% and Evolution off 2%.

Australia's ASX 200 fell 58 points, or 0.7%, to close at 8,783 on Friday, pressured by sharp losses in U.S. stock futures after chip stocks tumbled on Wall Street Thursday following their blistering rally earlier this year. Escalating Middle East tensions and weaker shipping flows through the Strait of Hormuz added to the cautious tone. The local benchmark reversed from a muted prior session, ending the week down 0.3% and marking a second straight weekly decline. Traders cautiously braced for Australia's labor data next week after May logged the strongest jobs growth in five months, even as unemployment stayed near a four-year top. Tech, non-energy minerals, manufacturing, and consumer non-durables led falls. Miners dropped 2.9%, with BHP and Rio Tinto sliding 2.9% and 2.5%, while gold names Evolution Mining (-4.2%) and Northern Star (-4.0%) also weighed. The big four banks eased between 0.2% and 1.1%. Energy stocks bucked the trend, lifted by Woodside Energy (2.9%) and Santos (1.7%).