ASX 200 Slides as Tariff Concerns Hit Sentiment

Australia's ASX 200 dropped 67 points, or 0.75%, to finish at 8,772 on Friday, reversing gains from the previous three sessions as weakness spread across tech, consumer durables, non-energy minerals, and healthcare. Sentiment soured after the Trump administration said it would impose new tariffs on 60 trading partners. For the week, the index shed 0.3%, marking a third weekly decline, with strong June jobs data reinforcing bets of further tightening by the Reserve Bank after three hikes this year. Inflation figures for June and Q2, due next week, remain in focus amid persistent price concerns. Tech leaders Xero (-4.5%), Wisetech Global (-4.6%), and Megaport (-3.3%) led losses, while gold miners Northern Star (-3.9%) and Evolution (-2.4%) also fell. In contrast, the big four banks rose between 1.0% and 1.5%. Energy stocks also firmed as oil surged past USD 100 following U.S. President Donald Trump’s warning of “major military punishment” against Iran after Houthi-linked tanker attacks.

Australian shares fell 26 points or 0.3% to 8,813 around midday on Friday, unwinding gains from the prior three sessions following a plunge on Wall Street overnight amid a surge in oil prices and weak earnings from two major companies. Locally, June's robust employment data raised prospects of another rate increase by the Reserve Bank, following three rate hikes this year. Caution also grew as Australia's inflation for June and Q2 will be due next week, with concerns about inflationary pressures persisting. Most sectors were in the red, led by tech, consumer durables, and non-energy minerals. Mining giant BHP Group slipped 1.6%, along with gold stocks such as Northern Star Resources (-3.3%) and Evolution Mining (-2.9%). Still, local markets are on track to post their first weekly gain in three weeks, up around 0.2% so far, supported by signs of resilience in manufacturing and services activity during July, as highlighted by S&P flash PMIs.

Australia's ASX 200 added 16 points or 0.2% to close at 8,839 on Thursday, up for the third session amid strength in non-energy minerals, utilities, and tech. However, markets trimmed morning gains after June's robust employment data raised prospects of another rate hike by the Reserve Bank. The central bank has raised cash rates three times this year to 4.35% to curb inflation, fully reversing the policy easing made in 2025. Meanwhile, the jobless rate held steady at 4.4%, in line with market estimates. Traders also cautiously braced for the flash PMI readings for July, set to be due Friday. Woodside Energy rose 0.5% amid the deepening Middle East tensions while Santos edged up 0.3% despite missing its second-quarter sales revenue. A rise in gold prices supported miners, boosting Northern Star Resources (2.6%) and Evolution Mining (2.1%). Meanwhile, the four major banks gained between 0.5% and 1.3%. In contrast, Macquarie fell 0.6% after announcing the retirement of its longtime CEO.