ASX 200 Extends Quarterly Gains Despite Monthly Setback

The ASX 200 rose 80 points, or 0.9%, to close at 8,789 on Wednesday, the final trading day of September, extending gains for a third straight session as firmer U.S. futures boosted sentiment ahead of the PCE price index, the Fed’s preferred inflation gauge, and Friday’s jobs report. Reserve Bank of Australia's Governor Michele Bullock reportedly signaled the September hike could be the last, a dovish cue for traders. Meanwhile, annual inflation eased to 4% in August, just below forecasts of 4.1%, while trimmed mean CPI held at 3.6%. All sectors strengthened, led by tech, transport, logistics, and consumer durables. Notable movers included Goodman Group (4.0%), Wesfarmers (3.6%), Brambles (2.4%), and Northern Star Resources (6.5%). The big four banks were muted. For the month, the local market fell 3.2%, snapping five months of gains, pressured by housing and fuel costs, sticky inflation, and higher borrowing rates. Still, the index managed a second straight quarterly rise, up 0.12%.

Australian shares edged up 17 points or 0.2% to 8,726 in Wednesday’s morning trade, marking a third straight gain as consumer durables, tech, and commercial services lifted sentiment. Support also came from stronger U.S. equity futures after New York Fed President John Williams’ remarks eased concerns over further rate hikes. Locally, the Reserve Bank reaffirmed its readiness to respond to economic shifts, stressing its dual focus on price stability and full employment. Heavyweights BHP Group and Rio Tinto added 0.8% and 0.4%, respectively, while Northern Star Resources surged 6.1%, Evolution Mining rose 1.7%, and Goodman Group gained 1.3%. Despite the recent rebound, the market remains on track for its first monthly decline in six months, down about 3.9% so far, pressured by persistent inflation and the drag from higher borrowing costs. Traders now await August inflation data due later today, alongside trade figures scheduled in the coming days.

The ASX 200 rose 30 points, or 0.3%, to 8,709 on Tuesday, extending prior gains amid strength in consumer durables, tech, and manufacturing. Sentiment was supported by the Reserve Bank of Australia’s assurance that monetary policy remains well placed to respond to economic developments, with the board reaffirming its focus on price stability and full employment. At its September meeting, the central bank lifted the cash rate to a 15-year high of 4.6% in its fourth hike this year, as expected. Traders now await key domestic releases later this week, including August inflation, trade, and private sector credit, while bracing for September PMI readings in top trading partner China. On fresh data, household spending was flat in August, ending three months of growth. BHP Group gained 0.6%, and Rio Tinto added 0.4%, while South32 (2.9%) and Wisetech Global (2.8%) also advanced. However, the big four banks fell 0.3% to 0.9%, and energy majors Woodside (-1.1%) and Santos Ltd. (-1.0%) lagged.