Australian Shares Retreat from Near 5-Month High

Australian stocks inched down 20 points or 0.2% to 9,019 on Thursday morning deals, reversing strength in the prior three sessions as traders booked profits after markets hit their highest level since early March. Caution also grew ahead of several local data, including June building permits and Q2 export and import prices later today, and June private sector credit on Friday. Still, a stronger U.S. equity futures capped losses following a sell-off on Wall Street overnight after the Fed decided to leave interest rates unchanged, but three policymakers voted in favor of a hike. Locally, a slowdown in June headline inflation eased pressure on the Reserve Bank following three hikes earlier this year. Losses were broad-based, led by utilities, tech, consumers, and logistics. Mining giant BHP Group dipped 1% while other notable decliners included Nextdc (-3.0%), Lynas Rare Earths (-3.0%), and BlueScope Steel (-1.7%). Conversely, the four big banks added between 0.4% and 1.2%.

Australia's ASX 200 jumped 91 points, or 1.0%, to end at 9,039 on Wednesday, extending gains for a third session and reaching its highest level since early March. Softer CPI data eased pressure on the Reserve Bank after three hikes earlier this year. However, gains were limited by weaker U.S. stock futures as oil prices surged following Iran's attack on U.S. forces. Meanwhile, investors cautiously awaited the Fed's interest rate decision and Chairman Kevin Warsh's briefing later in the day. Nearly all sectors advanced, led by healthcare, retail, consumer services, and consumer non-durables. Rio Tinto rallied 3.7% on its strongest first-half earnings in four years and its largest interim dividend since 2022. CSL surged 7.2% after announcing trials of a new immunoglobulin manufacturing process. Woodside Energy rose 1.4% as Q2 revenue jumped 28% and full-year guidance was narrowed. In contrast, three of the four major banks were subdued, with only ANZ Group managing a gain, rising 1.4%.

Australian equities jumped 109 points or 1.2% to breach the 9,000 level in early deals on Wednesday, advancing for the third straight session and reaching their highest level since early March. Stronger U.S. futures underpinned the rally after Wall Street closed mostly higher, buoyed by optimism over U.S.–Iran peace talks. Gains were broad-based across tech, healthcare, non-energy minerals, and commercial services, though momentum was tempered by caution ahead of June and Q2 inflation data due later today. Persistent price pressures remain in focus despite three RBA hikes this year, and Governor Michele Bullock reiterated the board’s readiness to tighten further if needed. Among individual stocks, Rio Tinto surged 4.5% after lifting its interim dividend on the back of a 47% profit jump. Meanwhile, Woodside Energy added 0.9% following a 28% rise in quarterly revenue. Meanwhile, the big four banks were subdued against the broader market’s upswing.