ASX Drops 1.0% to Finish at 6-Week Low

The ASX 200 tumbled 92 points or 1.0% to end at a six-week low of 8,804. Markets fell for the third session, as a rebound in U.S. futures failed to lift sentiment after Wall Street logged its third drop Wednesday, pressured by escalating U.S.–Iran tensions that sent Brent crude above USD100 a barrel, stoking inflation fears. Locally, RBA Deputy Gov. Andrew Hauser said policymakers will weigh further tightening at the September meeting, while Assistant Governor Sarah Hunter warned of limited tolerance for stronger price pressures. The hawkish tone prompted all four major banks to forecast another hike before year-end, with NAB tipping September and others November. Losses were broad, led by healthcare, non-energy minerals, tech, and financials. The big four banks slipped between 0.9% and 1.8%, while BHP (-2.4%) and Rio Tinto (-3.1%) also slid. Other laggards included PLS (-3.8%), Nextdc (-3.3%), and Lynas (-2.9%). Gains in Cochlear (1.6%) and Suncorp (1.3%) offered some support.

Australian stocks plunged 150 points or 1.7% to 8,761 in early Thursday trade, marking one of the sharpest single-day drops in recent weeks and extending losses for a third session. Markets lingered at their lowest in six weeks, with sentiment hit hard by the third straight drop on Wall Street overnight as mounting U.S.–Iran tensions pushed Brent crude above USD100/bbl, stoking inflation fears. Meantime, U.S. Treasury yields climbed ahead of key CPI data. Locally, rate concerns deepened after Deputy Gov. Andrew Hauser said the RBA will debate further tightening at its September meeting, citing persistent inflation risks, and Assistant Governor Sarah Hunter warned of limited tolerance for stronger price pressures. All sectors fell, led by healthcare, non-energy minerals, retail, and logistics. The four big banks fell between 1.4% and 1.8%, while BHP Group slid 3.2%. Other notable laggards included PLS Group (-3.6%), Lynas Rare Earths (-3.0%), Nextdc (-2.9%), and Regis Resources (-2.3%).

Australia’s ASX 200 eased 0.1% to end at 8,911 on Wednesday, extending prior weakness to a six-week low as caution lingered after oil neared USD 100 and global inflation worries deepened. Locally, business mood fell to a three-month low in August while consumer sentiment sank in September. Meanwhile, regional markets dipped after reports that Iran escalated tensions, firing missiles at a U.S. base in Jordan and attacking ships in the Strait of Hormuz. In top trading partner China, headline inflation accelerated as expected in August while producer prices rose more than estimated. Healthcare, financials, and commercial services weighed on the index. CSL dipped 2.0% after cutting FY26 guidance and warning of slowing plasma demand and rising generic competition. The big four banks lost 0.4–2.2%. Strength in non-energy minerals, energy, and industrial services capped losses, with Woodside and Santos up 2.7% and 1.8%. Miners also gained amid solid rises in BHP (2.8%) and Rio Tinto 2.3%.