ASX 200 Pares Early Losses

The ASX 200 eased 11 points, or 0.1%, to close at 8,720 on Thursday, extending prior drops as weakness in tech, non-energy minerals, and industrial services weighed. Still, early declines eased after September employment in Australia unexpectedly fell, tempering bets on further tightening by the Reserve Bank, with odds of a November hike dropping below 20% from 35% earlier. Meanwhile, the jobless rate held at 4.7%, its highest in nearly five years. In the U.S., futures tied to the S&P 500 and Nasdaq fell after a sharp sell-off in tech and hotter-than-expected inflation raised Fed hike concerns. BHP Group shed 4.8% despite averting a strike at Escondida, the world’s largest copper mine. Other laggards included South32 (-5.7%), Goodman Group (-4.6%), Evolution Mining (-3.0%), and Northern Star Resources (-2.0%). In contrast, WiseTech Global jumped 2.9% after ASIC cleared founder Richard White and two staff in a year-long insider trading probe, though one investigation remains ongoing.

Australian stocks fell 42 points or 0.5% to 8,686 in early Thursday trading, extending losses to their weakest level in a week. A sharp Wall Street sell-off hit sentiment after hotter-than-expected U.S. inflation data rattled tech stocks and revived bets on Fed hikes. Locally, September jobs data showed the unemployment rate stuck at a near five-year high of 4.7% as employment unexpectedly declined. In major trading partner China, September CPI quickened but undershot forecasts, while producer prices rose more than expected; exports and imports surged to record highs, driving a strong trade surplus. Sectoral losses were led by tech, non-energy minerals, industrial services, and consumer durables, partly offset by gains in communications, consumer non-durables, and utilities. Heavyweight BHP Group slumped 3.8% despite securing a deal to avert a strike at Chile’s Escondida copper mine. Other major laggards included Goodman Group (-3.8%), Lynas Rare Earths (-3.7%), and Codan Ltd. (-3.4%).

The ASX 200 lost 56 points, or 0.6%, to close at 8,728 on Wednesday, reversing recent gains as financials, consumer durables, and transport weighed. Traders turned cautious ahead of the upcoming labor data, after August unemployment hit 4.6%, the highest since late 2021. Meanwhile, Australia’s leading index slipped 0.1% in September, its first decline since May, due to higher fuel costs and rising borrowing rates. Still, losses were partly offset by firmer U.S.stock futures ahead of a key inflation report amid elevated oil prices. In top trading partner China, September CPI was slightly below forecasts, but producer prices rose more than expected. Meanwhile, Chinese exports and imports hit record highs, driving a solid trade surplus. The big four banks fell between 0.9% and 2.3%, while BHP (-0.9%) and Rio Tinto (-0.3%) also lagged. Other laggards included Genesis Minerals (-3.9%), Evolution Mining (-2.9%), and Qantas Airways (-2.2%).