ASX 200 Bounces Back, Up 0.5% at Close

The ASX 200 gained 42 points, or 0.5%, to end at 9,020 on Thursday, rebounding from declines in the prior three sessions amid bargain hunting after Australian markets fell to a four-week low due to Q2 GDP data that reinforced views that the Reserve Bank may deliver another rate hike at its meeting later this month. In top trading partner China, private-sector activity accelerated in August from July’s four-month low, with stronger output and new orders for both manufacturing and services sectors. Non-energy minerals led gains, followed by financials, manufacturing, and communications, though losses in energy minerals, consumer durables, and healthcare capped the advance. Gold miners rallied, with Northern Star Resources and Evolution Mining each up 2.6%. The big four banks rose 1%–2%, while Lynas Rare Earths climbed 2.4%. In contrast, Corporate Travel plunged 84% to a near 14-year low after trading resumed following a year-long suspension over missed financial reporting deadlines.

Australian shares edged up 12 points or 0.2% to 8,994 around midday Thursday, snapping a three-session slide after Wall Street rebounded from losses driven by rising Treasury yields and renewed U.S.–Iran tensions. Bargain hunting emerged after local markets hit a four-week low, lifting most sectors, notably non-energy minerals, manufacturing, and industrials. However, gains were capped by trade data showing the surplus narrowed to AUD 1.9 billion in July as exports fell faster than imports. Meanwhile, stronger-than-expected Q2 GDP figures reinforced expectations that the Reserve Bank will raise rates at this month’s meeting. The big four banks rose between 0.5% and 1.5%, while PLS Group gained 3.0%, Fortescue 2.7%, and Orica 2.2%. In contrast, heavyweight BHP Group slipped 1.1%.

Australia’s ASX 200 fell 88 points, or 1.0%, to end at 8,978 on Wednesday, its third straight loss and a four-week low, as sentiment soured after Wall Street extended falls for the third session Tuesday amid renewed Middle East conflict, which lifted oil prices and stoked inflation fears and rate-hike bets. Locally, worries over supply disruption and inflation kept traders edgy, with markets pricing in nearly a 60% chance of an RBA hike later this month. Traders also braced for July trade data due Thursday after June’s strong exports and subdued imports. Still, losses were capped by stronger-than-expected Q2 GDP data, driven by private demand and mining exports. Sectoral weakness was broad, led by non-energy minerals, commercial services, and consumer names. BHP Group (-3.6%) and Rio Tinto (-1.9%) dragged miners lower, while weaker bullion hit Northern Star Resources (-5.0%) and Evolution Mining (-1.9%). In contrast, Woodside Energy rose 1.2%, and the big four banks added 0.2% to 0.5%.