Australian Stocks Subdued Ahead of China Data

Australian shares steadied on Wednesday morning, hovering near 8,910 after Tuesday’s sharp drop to a six-week low. Bargain hunting in non-energy minerals, energy stocks, and tech helped offset weakness in healthcare, commercial services, and financials. Sentiment remained fragile as oil prices surged and global inflation worries deepened, with local business confidence slipping to a three-month low in August and consumer sentiment sliding in September. Meanwhile, U.S. futures weakened after Wall Street’s overnight losses, driven by escalating Middle East tensions following attacks on Saudi energy facilities. On the trade front, China logged robust exports and imports in August, with trade surplus topping USD 800 billion so far this year. Miners led gains, with BHP up 2.2%, while Woodside Energy rose 2.3% and Santos added 1.4%. In contrast, three of the four big banks eased between 0.1% and 1%. Traders now await CPI and PPI data from main trading partner China later today.

The ASX 200 slumped 90 points, or 1.0%, to close at 8,921 on Tuesday, marking a six-week low as weakness spread across retail trade, financials, and tech. Sentiment soured after Dow futures tumbled on surging oil prices and escalating U.S.–Canada trade tensions. Adding pressure, Reserve Bank's Assistant Governor Sarah Hunter warned cash rates may need to rise further to rein in sticky inflation. Meanwhile, fresh data showed Australia’s business mood fell to a three-month low in August, while business conditions slid to a six-year trough amid weaker sales, profitability, and employment. Losses were cushioned by stronger August trade flows in top trading partner China, ahead of a scheduled meeting between Presidents Xi and Trump in Washington. Commonwealth Bank fell 2.2% after flagging softer mortgage growth last month, while the other three big banks dipped between 1.7% and 3.2%. REA Group (-2.9%) and Wesfarmers (-2.5%) also lagged. Energy names bucked the trend, with Santos up 1.1%.

Australian shares slipped 55 points or 0.6% to 8,956 in early Tuesday trade, extending weakness from the prior muted session. Sentiment was pressured by a sharp fall in U.S. futures as Wall Street prepared for a shortened week against the backdrop of the Middle East war and rising trade frictions between Canada and the U.S. Locally, consumer confidence dropped in September for the first time since June, hit by higher fuel costs and renewed fears of further rate hikes. Traders also grew cautious ahead of China’s August trade data due later today. Losses were led by tech services, financials, retail, and transport, though gains in non-energy minerals and consumer durables helped cushion declines. The big four banks fell between 0.7% and 1.4%, while BHP Group (-0.6%), Fortescue (-1.6%), and Bluescope Steel (-5.5%) underperformed. In contrast, Greatland Resources rose 1.1% and AMP Ltd. added 0.6%.