Australian Equities Set for Solid Weekly, Monthly Gains

Australia's ASX 200 rose 16 points, or 0.2%, to close at 8,908 on Friday, extending prior gains as consumer discretionary, industrials, and commercial services stocks advanced. However, the index fell from an over seven-week high as early gains faded following a sharp drop in U.S. stock futures after Alphabet posted a historic share-price decline, reviving concerns over heavy AI spending. Meanwhile, caution prevailed ahead of official PMI data in top trading partner China this Saturday. Traders weighed the prospect of another RBA rate hike next week, following four increases this year, as inflation could stay elevated longer than expected. Wesfarmers (3.2%), Brambles (2.3%), and Aristocrat Leisure (2.0%) led gains. Woolworths rose 1.9% on stronger food sales. Conversely, Coles plunged 7.6% due to weak supermarket sales and a likely flat first-half EBIT. The index gained 1.3% for the week, reversing prior modest losses. It rose 1.4% for October, a turnaround from September's 3.2% fall.

Australian shares climbed 95 points, or 1.1%, to 8,986 in Friday morning trading, extending prior strength and reaching their highest in more than seven weeks, supported by strong domestic earnings. Meanwhile, private credit grew 0.6% mom in September, keeping the same pace for a third month, with gains across housing, business, and personal credit. However, upside was capped by overnight losses on Wall Street and caution ahead of official PMI data from top trading partner China. Traders also weighed the prospect of another RBA rate hike next week, following four increases this year, as Governor Bullock warned that inflation could remain elevated longer than expected. Nearly all sectors gained, led by industrials, commercial services, and healthcare. Major gainers included Reece Ltd. (9.8%), Brambles Ltd. (2.6%), and REA Group (2.4%), while the big four banks rose 1–1.5%. The ASX 200 rose around 2% for the week and 2.2% for October, recovering from the prior month's sharp decline.

ASX200 increased to 8937.00 Index Points, the highest since September 2026. Over the past 4 weeks, Australia Stock Market Index (AU200) gained 1.64%, and in the last 12 months, it increased 0.54%.