Australia Stocks Extend Gains as Week Begins

Australian shares rose 24 points or 0.3% to 8,740 in early Monday trade, sustaining prior gains as U.S. futures firmed after Wall Street closed higher last week ahead of a busy run of earnings and inflation data. Locally, investors awaited the Reserve Bank's latest meeting minutes later this week, alongside September labor market, business confidence, and leading index figures. Focus in China, Australia's largest trading partner, turned to CPI/PPI and trade performance. However, gains were tempered by geopolitical risks after reports that U.S. President Donald Trump may join Saudi Arabia in retaliating against Iran-backed Houthis in Yemen. Tech, manufacturing, and consumer durables led advances, though steep losses in communications capped momentum. Notable movers included BHP Group (2.3%), Bluescope Steel (3.2%), South32 (2.8%), and Fortescue Ltd. (1.6%), while three of the four major banks added between 0.2% and 0.8%.

Australia's ASX 200 rose 56 points, or 0.6%, to close at 8,717 on Friday, breaking a two-day slide as U.S. futures firmed after oil prices eased on President Trump’s assurance that Washington would not strike Tehran before next month’s midterms, citing “productive discussions” with Iran. Gains were led by consumer services, retail, healthcare, and utilities, offset by weakness in tech, communications, and manufacturing. Goodman Group and QBE each climbed 3.2%, while Pro Medicus (4.5%), Codan (2.7%), Transurban (2.3%), and REA Group (2.2%) also advanced strongly. However, three of the big four banks were subdued, while BHP Group slipped 0.4%. For the week, the index added 0.4%, extending prior gains. Traders now look ahead to September labor market data next week after August’s jobless rate hit its highest since 2021, alongside key releases in top trading partner China, including CPI/PPI and trade figures, as activity resumes post-Golden Week.

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.