Australian Shares Edge Higher, Weekly Loss Looms

Australian stocks added 18 points or 0.2% to 9,037 in early trade on Friday, building gains from the prior session following overnight gains on Wall Street as Treasury yields pulled back after Fed Waller said he’d be “inclined to support” holding rates steady barring any surprises in upcoming inflation data. Locally, August services growth was revised higher amid improving confidence that came close to its level before the outbreak of war in the Middle East. Most sectors advanced, led by non-energy minerals, tech, and healthcare. Among major performers were Cochlear Ltd. (2.9%), Perseus Mining (2.1%), and JB Hi-Fi Ltd. (1.5%). The four big banks added between 0.4% and 1.0%. For the week, however, domestic markets are on track to post a decline, down around 0.7% so far following prior gains, dragged by worries that the Reserve Bank may deliver another rate hike at its meeting later this month following stronger-than-expected Q2 GDP data.

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%.