Australia Stocks Inch Higher, Sentiment Still Fragile

Australian shares edged up 0.2% to 8,676 in early Monday trading, trying to claw back losses from the prior session as utilities, industrials, and financials provided support. Investor sentiment, however, remained fragile, with U.S. equity futures under pressure after oil prices climbed following President Donald Trump’s rejection of an Iranian peace proposal aimed at ending the Middle East conflict and reopening the Strait of Hormuz. Locally, traders braced for the Reserve Bank’s policy decision Tuesday, with expectations leaning toward further tightening after three hikes earlier this year as inflation remains sticky. In main trading partner China, January–August industrial profit figures are due today, with PMI surveys to follow in coming days. The four major banks rose between 0.1% and 0.7%. Northern Star Resources surged 8.6%, and Evolution Mining added 1%, while laggards included Technology One (-1.8%), Insurance Australia (-1.5%), HUB24 (-1.2%), and Lynas Rare Earths (-0.8%).

Australia’s ASX 200 lost 37 points, or 0.4%, to end at 8,665 on Friday, marking a second session of losses as caution grew ahead of next week’s Reserve Bank policy decision. Sticky inflation has fueled expectations of further rate hikes following three moves earlier this year, while August inflation data is also due after July’s reading exceeded forecasts and remained above the central bank’s 2–3% target band. Separately, August labor data showed mixed signals, with the jobless rate rising to a near five-year high of 4.6%, while employment rose more than expected. In the U.S., a summit between President Trump and Chinese leader Xi Jinping failed to produce breakthroughs on key geopolitical issues, despite an extension of their trade truce. Most sectors slid, led by tech, consumer services, and logistics. Mineral Resources (-4.8%), PLS Group (-3.7%), REA Group (-3.2%), and Xero (-2.8%) posted heavy losses. For the week, the index fell 0.8%, marking its fourth straight weekly decline.

Australian shares fell 47 points or 0.5% to 8,655 in Friday morning trade, extending losses as U.S. futures weakened after Wall Street’s choppy session overnight, pressured by rising Treasury yields and volatile oil prices. Local sentiment stayed cautious ahead of next week’s policy decision, with persistent inflation fueling expectations of another rate hike after three moves earlier this year. August labor data painted a mixed picture: the jobless rate climbed to a near five-year high of 4.6%, but employment rose more than forecast. Sectoral weakness was broad, led by tech, non-energy minerals, logistics, and industrials, with notable laggards including Xero Ltd. (-2.9%), Greatland Resources (-2.5%), REA Group (-2.2%), and Aristocrat Leisure (-2.1%). In contrast, the four major banks edged higher, up between 0.2% and 0.4%. For the week, the market is set for a fourth straight decline, down about 0.9% so far. Markets now eye U.S. President Trump–Xi Jinping summit for policy direction.