ASX 200 Ends Slightly Lower, Tracks 0.6% Weekly Decline

Australia's ASX 200 shed 25 points, or 0.3%, to finish at 9,059 on Friday, unwinding the prior session’s gains as healthcare, tech, logistics, and commercial services dragged. Nerves sharpened ahead of July inflation data due next week, after June’s print eased marginally yet still above the Reserve Bank’s target band. Governor Michele Bullock recently warned that inflation remains elevated, flagging upside risks from commodity volatility tied to Middle East conflict. Still, stronger U.S. stock futures capped the weakness after Wall Street fell sharply Thursday amid higher Treasury yields. Tech names tracked Wall Street’s peers, with Wisetech Global (-2.1%) and Nextdc (-1.3%) lower. Goodman Group (-5.5%), Wesfarmers (-2.8%), and Sonic Healthcare (-2.0%) also lagged, while the big four banks pared losses to end mixed. Bucking the trend, Guzman Y Gomez soared 11.5% after reporting a 29.7% profit jump. For the week, local markets slipped 0.6%, marking their second straight weekly fall.

Australian equities inched lower around midday on Friday, hovering around 9,071 after closing modestly higher in the prior session, heading for the second straight weekly decline. A sharp drop on Wall Street overnight weighed on sentiment as long-dated U.S. Treasury yields resumed their march higher, after the government's moves to stem the recent bond market rout failed to ease investor fears about inflation. Locally, private sector activity slowed in August, with the flash Composite PMI slipping from July's 6-month high amid a decline in manufacturing output. Caution also grew ahead of July inflation readings next week. Meanwhile, employment unexpectedly fell in July, pushing the jobless rate to a three-month high. Tech, healthcare, and commercial services weighed though gains in energy minerals, utilities, and communications capped the downside. Steep losses were seen for Charter Hall (-6.3%), Pro Medicus (-3.3%), Wisetech Global (-2.9%), and Lynas Rare Earths (-2.2%).

Australia’s ASX 200 rose 30 points, or 0.3%, to close at 9,084 on Thursday, snapping a six-day losing streak. Gains in consumer durables, non-energy minerals, and healthcare helped lift sentiment, aided by a modest rise in U.S. futures after the Treasury said it would double longer-term debt purchases to ease yields. Local markets rebounded from a two-week low as top trading partner China kept lending rates at record lows for a 15th month to support growth. However, domestic headwinds capped momentum: July employment unexpectedly fell, pushing the jobless rate to a three-month high, while August inflation expectations rose from July’s six-month low, underscoring sticky price pressures with trimmed mean CPI up 3.6% yoy in June, the fastest since September 2024. Miners advanced, led by BHP (2.5%) and Rio Tinto (1.6%), while Northern Star Resources surged 5.9% on a 24% profit jump. In contrast, the big four banks slid 1.5% and 2.5%. Traders now await Friday’s flash PMI prints for August.