ASX 200 Closes at 6-week Low

The ASX 200 advanced 67 points, or 0.8%, to close at a one-week high of 8,783 on Monday, extending prior gains as stronger U.S. stock futures followed a drop in oil prices. Sentiment improved after President Trump said Russia and Ukraine would not target each other’s energy facilities, while Iran sought talks with Saudi Arabia following Houthi attacks. Australia, meantime, raised its travel advisory for Saudi Arabia to “Do Not Travel.” Gains were led by commercial services, manufacturing, and non-energy minerals, offsetting falls in communications, tech, and industrials. Heavyweights BHP Group and Rio Tinto jumped 2.4% and 1.3%, and the big four banks climbed between 1%–2.3%. Other standouts included Bluescope Steel (3.7%), Sandfire Resources (3.5%), Xero (3.3%), and Seek (2.3%). Investors now await the Reserve Bank’s meeting minutes, alongside September labor market, business confidence, and leading index data. In China, focus turns to CPI, PPI, and trade figures due later this week.

Australian shares rose 24 points or 0.3% to 8,740 in early Monday trade, sustaining prior gains as U.S. futures firmed after Wall Street closed higher last week ahead of a busy run of earnings and inflation data. Locally, investors awaited the Reserve Bank's latest meeting minutes later this week, alongside September labor market, business confidence, and leading index figures. Focus in China, Australia's largest trading partner, turned to CPI/PPI and trade performance. However, gains were tempered by geopolitical risks after reports that U.S. President Donald Trump may join Saudi Arabia in retaliating against Iran-backed Houthis in Yemen. Tech, manufacturing, and consumer durables led advances, though steep losses in communications capped momentum. Notable movers included BHP Group (2.3%), Bluescope Steel (3.2%), South32 (2.8%), and Fortescue Ltd. (1.6%), while three of the four major banks added between 0.2% and 0.8%.

Australia's ASX 200 rose 56 points, or 0.6%, to close at 8,717 on Friday, breaking a two-day slide as U.S. futures firmed after oil prices eased on President Trump’s assurance that Washington would not strike Tehran before next month’s midterms, citing “productive discussions” with Iran. Gains were led by consumer services, retail, healthcare, and utilities, offset by weakness in tech, communications, and manufacturing. Goodman Group and QBE each climbed 3.2%, while Pro Medicus (4.5%), Codan (2.7%), Transurban (2.3%), and REA Group (2.2%) also advanced strongly. However, three of the big four banks were subdued, while BHP Group slipped 0.4%. For the week, the index added 0.4%, extending prior gains. Traders now look ahead to September labor market data next week after August’s jobless rate hit its highest since 2021, alongside key releases in top trading partner China, including CPI/PPI and trade figures, as activity resumes post-Golden Week.