Australian Shares Rebound, Weekly Gain Intact

Australian stocks rose 36 points or 0.4% to 8,697 in Friday morning session, reversing weakness in the prior two sessions amid a modest rise in U.S. equity futures after Wall Street closed lower for the third straight day as rising Treasury yields and oil prices above $100 per barrel pressured sentiment. However, gains were capped by caution ahead of September labor market data next week after the August jobless rate in Australia hit the highest since 2021. Main trading partner China will also release key data, including CPI/PPI and trade figures as activity resumed after the Golden Week holidays. Tech, financials, and consumer shares led advances, offset by weakness in communications, manufacturing, healthcare, and industrial services. The big four banks rallied, joined by solid moves in Transurban (2.1%), QBE Insurance (2.0%), Suncorp (1.2%), and Aristocrat Leisure (1.0%). For the week, domestic markets are tracking a second consecutive gain, up about 0.2% so far.

Australia's ASX 200 fell 67 points, or 0.8%, to finish at 8,661 on Thursday, marking a second straight session of decline and nearing a one-week low. Sentiment weakened after U.S. stock futures slipped as President Donald Trump ruled out a deal with Iran, with reports suggesting the U.S. military is preparing possible strikes ahead of the midterms. Domestically, October inflation expectations climbed to a four-month high, underscoring persistent price pressures from elevated global energy costs even as the Reserve Bank continues its policy tightening. Losses were broad, led by tech, non-energy minerals, industrial services, and logistics. The four major banks each shed around 1.5%, while BHP Group dropped 2.0% and Rio Tinto slid 2.9%. Fortescue dipped 1.4% amid a standoff with China Mineral Resources Group over long-term iron ore contracts. Other notable laggards included Lottery Corp. (-3.8%), Xero (-3.0%), and Endeavor Group (-1.7%).

Australian shares slipped 26 points, or 0.3%, to 8,701 in early Thursday trade, extending the prior session’s drop as subdued U.S. stock futures followed Wall Street’s break from recent winning streaks overnight. Surging Treasury yields reignited inflation concerns, while Fed minutes revealed divisions over the rationale for further hikes, with most officials anticipating another move by year-end. Locally, October inflation expectations rose to a four-month high, reflecting persistent price pressures amid elevated global energy costs linked to Middle East tensions. Losses were contained as markets in top trading partner China prepared to reopen after the Golden Week holiday. Tech, non-energy minerals, and logistics drove weakness, though gains in consumer non-durables, energy minerals, and retail trade limited downside. Heavyweight BHP Group fell 2.4%, while Lynas Rare Earths (-4.4%), Fortescue (-3.4%), Evolution Mining (-2.2%), and Northern Star Resources (-2.0%) also weighed.