ASX 200 Ends 0.8% Higher, Logs First Weekly Gain in 5 Weeks

Australia’s ASX 200 rose 68 points or 0.8% to close at 8,682 on Friday, clawing back part of Thursday’s 2% slump as bargain hunters stepped in after the index hit its lowest since mid-June. Sentiment improved on cooler-than-expected U.S. PCE inflation data ahead of monthly jobs figures, with U.S. stock futures also firmer. Locally, traders await September final PMI and October confidence readings, set to be due next week. Meanwhile, August trade showed solid export growth in Australia despite a narrower surplus on surging imports. Gains were broad, led by tech, consumers, energy minerals, and retail. The big four banks added between 0.4% and 1.7%, while BHP and Rio Tinto each advanced 1.2%. Other standouts included Wisetech (6.4%), Xero (5.0%), QBE (4.2%), and Whitehaven Coal (3.9%). Offsetting moves came from Cochlear (-4.0%), Pro Medicus (-2.7%), and Goodman Group (-2.5%). For the week, the market edged up 0.2%, snapping four straight weekly declines.

Australian shares added 18 points or 0.2% to 8,631 in Friday morning trade, rebounding from a 2% slump in the prior session as bargain hunters returned after markets hit their lowest since mid-June amid domestic and global headwinds. Meanwhile, U.S. stock futures edged higher after Wall Street closed little changed overnight, with traders awaiting monthly jobs data and as the global bond sell-off eased. Gains were led by tech, consumer non-durables, and energy minerals, though weakness in healthcare and utilities capped momentum. The four major banks advanced modestly, while PLS Group (3.2%), QBE Insurance (2.9%), and Suncorp (1.3%) posted notable rises. Still, the market is on track for a fifth straight weekly decline, down about 0.3% so far, reflecting persistent inflation concerns, rising crude tied to Middle East tensions, and hawkish policy expectations. Traders now look to next week’s September final PMI and October consumer confidence for fresh economic signals.

The ASX 200 plunged 175 points, or 2.0%, on Thursday, its steepest one-day fall since early March, finishing at 8,614, the lowest since mid-June. Australian markets snapped a three-session winning streak as sentiment soured on surging U.S. Treasury yields, sticky inflation, and renewed fears of further tightening by the Reserve Bank. Analysts also cautioned that continued hikes could trigger the country’s worst property slump in three decades. Trade data also weighed, with August’s surplus shrinking to a three-month low as imports outpaced exports. Still, stronger U.S. stock futures capped further weakness, as traders await Friday's U.S. monthly job reports. Heavy selling gripped markets, driven by energy minerals, logistics, transport, and financials. The big four banks fell between 0.9% and 3.3%, while Northern Star Resources (-4.1%), CSL (-3.3%), and Woodside Energy (-3.1%) also posted sharp falls. Suncorp Group tumbled 7.4% after denying takeover talks with Japan’s Tokio Marine.