Broad Gains Push Australian Shares Up at Week’s Open

The ASX 200 surged 122 points, or 1.4%, to close at 8,894 on Monday, bouncing back from prior losses as U.S. futures rallied and oil prices slid on easing geopolitical tensions. Locally, Australia's flash PMI data showed services activity expanding at the fastest pace in six months in July, while factory output posted its strongest rise this year. In main trading partner China, industrial profits grew 18.7% yoy in H1, holding firm though softer than the January–May pace. However, gains were tempered by caution ahead of Australia’s June and Q2 inflation prints later this week, with concerns over sticky price pressures lingering. All sectors advanced, led by tech, commercial services, non-energy minerals, and process industries. Capricorn Metals soared 14.3% after boosting gold reserves by 33% to 5.24 million ounces. The four major banks rose between 1.1% and 1.5%, while standout performers included BHP (2.2%), Goodman Group (3.3%), Aristocrat Leisure (2.1%), and Evolution Mining (2.0%).

Australian stocks advanced 79 points or 0.9% to 8,851 in early trade on Monday, reversing weakness in the prior session and tracking stronger U.S. stock futures. Sentiment was buoyed by softer oil prices after a pause in U.S.–Iran tensions over the weekend. Locally, flash PMI data showed services activity rising the most in six months in July, while factory output delivered its strongest rise this year. Gains, however, were capped by caution ahead of June inflation figures due later this week, as concerns over persistent price pressures in Australia linger. Traders also cautiously eyed industrial profit data for H1 2026 in top trading partner China later today, after January–May figures showed an 18.8% jump, driven by an AI investment boom. Gains were broad, led by tech, non-energy minerals, and commercial services. The big four banks rose between 0.2% and 0.8%, while BHP Group climbed 1.7%. Other standouts included Northern Star Resources (3.2%), Goodman Group (2.7%), and CSL (2.2%).

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.