ASX 200 Turns Early Weakness to Close Higher

The ASX 200 advanced 43 points, or 0.5%, to end at 9,019 on Monday, reversing early declines and extending last week’s momentum. Investor sentiment improved after U.S. stock futures rallied, buoyed by President Trump’s decision to hold off on further action against Iran. Locally, July factory activity in Australia was revised higher, supported by easing inflation. In main trading partner China, policymakers pledged continued monetary support in H2 2026, vowing to maintain liquidity and adjust tools as needed. Domestic earnings season also drew focus, with AMP, Nick Scali, James Hardie and REA Group set to report, offering insight into corporate resilience amid the five-month Iran war. 4DMedical surged 9.1% to lead health names, while Treasury Wine Estates rose 5.9% atop consumer staples. Three of the big four banks gained between 0.2% and 0.8%. In contrast, energy stocks lagged as oil prices slipped, with Woodside down 1.4% and Santos off 1.9%.

Australian shares eased 27 points, or 0.3%, to 8,950 on the first trading day of August, reversing the prior session’s gain as investors turned cautious ahead of key domestic releases this week, including June household spending, trade data, and July job ads. Focus also extends to top trading partner China, where PMI readings from a private survey and trade figures are due this week. Firmer U.S. equity futures tempered losses after President Trump signaled restraint on further Iran strikes, raising hopes for progress in the five-month conflict. Locally, factory activity in July was revised upward amid easing inflation, while June private credit posted its strongest rise in six months. Energy minerals, consumer services, and healthcare weighed, though utilities and consumer non-durables offered support. Three of the four major banks slipped, while energy names Woodside (-1.5%) and Santos (-1.4%) retreated. In contrast, Wisetech (1.3%), Evolution Mining (1.2%), and QBE (0.7%) advanced.

The ASX 200 closed slightly firmer at 8,978 on Friday, clawing back losses from the prior session as strength in tech, non-energy minerals, and utilities offset broader caution. Sentiment was lifted by a rally in U.S. stock futures after Amazon’s upbeat earnings and a rebound in chip stocks on Wall Street Thursday. Gains, however, were capped by weaker factory activity in China, with July’s official PMI underscoring slowing demand from Australia’s key trading partner. Miners gained on higher copper prices, lifting Rio Tinto (1.0%) and South32 (0.8%), while gold producers Evolution Mining (1.8%) also advanced. However, the big four banks fell between 0.1% and 0.4%. Still, Australian equities booked their first weekly gain in a month, up 2.3%, and a fourth straight monthly rise, supported by robust private credit growth in June. Inflation worries also eased after softer June and Q2 readings, reinforcing views that the central bank’s three rate hikes this year are beginning to bite.