Australia Shares Muted as Weeks Open

Australian stocks were little changed in early Monday trade, hovering near 8,737 after four straight sessions of losses. The market lingered at its weakest in almost two months last week as cost pressures and expectations of prolonged Reserve Bank tightening continued to weigh on sentiment. Meanwhile, U.S. equity futures dropped sharply as oil prices jumped following weekend strikes on Saudi Arabia and Gulf shipping. Gains in consumer non-durables, energy minerals, and commercial services offset declines in healthcare, manufacturing, and non-energy minerals. Three of the four major banks rose modestly, while energy names Woodside (0.8%) and Santos (0.9%) advanced. On the downside, BHP slipped 1.1%, Goodman Group fell 1%, Evolution Mining dropped 2.5%, and Lynas Rare Earths tumbled 3.3%. Traders now await remarks from RBA’s Sarah Hunter later today and key activity data from top trading partner China this week.

ASX200 decreased to 8699.00 Index Points, the lowest since July 2026. Over the past 4 weeks, Australia Stock Market Index (AU200) lost 5.46%, and in the last 12 months, it decreased 1.79%.

The ASX 200 slid 78 points, or 0.9%, to end at 8,741 on Friday, its lowest in seven weeks. The benchmark index fell for a fourth straight session, logging its worst week in six months with a 3.0% slide. Sentiment weakened as surging crude oil prices raised doubts over a quick easing in Australia's inflation. RBA Deputy Governor Hauser said further hikes will be debated at September’s meeting, echoed by Assistant Governor Hunter’s warning of limited tolerance for stronger cost pressures. The country's 10-year bond yield spiked above 5.3%, the highest since May 2011, tracking U.S. Treasury gains and reinforcing expectations of tighter borrowing conditions. Losses were broad, led by healthcare, non-energy minerals, tech, and consumer stocks. Major miners tumbled, with BHP down 4.3%, Rio Tinto off 3.7%, and Fortescue slipping 2.4%. South32 (-4.4%), Northern Star Resources (-2.3%), and Evolution Mining (-2.0%) also lagged. In contrast, the big four banks gained between 0.6% and 2.5%.