Australia Shares Inch Higher, Weekly Picture Muted

Australian stocks edged up 14 points, or 0.2%, to 8,747 in early Friday trade, extending gains for a third straight session after Wall Street rebounded overnight as easing oil prices and softer Treasury yields helped calm nerves after the Fed’s rate-hike shock. Tech, non-energy minerals, and consumer durables drove the gains, though losses in healthcare, energy minerals, and retail trade capped the upside. Gold miners advanced, with Northern Star Resources up 2.7% and Evolution Mining rising 3.0%, while Lynas Rare Earths, Perseus Mining, and South32 each added over 2%. For the week, the domestic market was little changed, stabilizing after recent declines as traders weighed remarks before parliament from RBA Governor Michele Bullock, who warned that upside inflation risks are emerging amid surging global energy costs from the prolonged Middle East conflict, compounded by pressures from the AI data-centre boom and extreme weather.

The ASX 200 added 36 points, or 0.4%, to finish at 8,732 on Thursday, extending gains from the prior session as U.S. stock futures rallied after the Federal Reserve raised borrowing costs for the first time since 2023. Analysts said the move bolstered the central bank’s credibility and reassured markets of its resolve to curb inflation. Locally, bargain hunting persisted after Australian shares hit a near ten-week low earlier this week, driving strength in financials, industries, and logistics. The big four banks surged between 1.3% and 2.6% after a volatile week shaped by rising domestic rate expectations. Insurers also advanced, with QBE up 1.1% and Insurance Australia 0.6% higher. Energy stocks lagged after oil prices retreated on a surprise build in U.S. crude inventories, while miners were subdued, with BHP edging lower and Rio Tinto flat. Traders now anticipate remarks from Reserve Bank Governor Michele Bullock, who is scheduled to testify before Parliament on Friday.

Australian equities advanced 43 points, or 0.5%, to 8,739 in early Thursday trade, extending prior gains as a rebound in U.S. stock futures lifted sentiment after an overnight retreat on Wall Street following the Federal Reserve’s first rate hike in three years. Bargain hunting persisted following a near ten-week local low earlier this week, with investors weighing sticky inflation and the likelihood of another Reserve Bank move later this month. Meanwhile, Reserve Bank Governor Michele Bullock is scheduled to testify before Parliament on Friday. In top trading partner China, mixed August data spurred hopes of fresh stimulus, offering some support. Financials, tech, and manufacturing led advances, offset by weakness in healthcare and resources. The big four banks rallied alongside insurers QBE (1.9%) and IAG (0.8%), while Qantas (2.2%), Bluescope Steel (2.1%), and Ramsay Health Care (1.2%) also outperformed. Energy lagged, with Woodside down 1.5% and Santos off 2.1%.