Australian Shares Trade Notably Lower

The ASX 200 fell 44 points, or 0.5%, to close at 9,021 on Friday, reversing the prior session’s rally as Dow futures dropped sharply following Thursday’s Wall Street sell-off. Concerns over surging AI spending and whether data center expansion justifies current valuations weighed on sentiment. Tech, logistics, and mining led losses, while financials and transport strengthened. Heavyweights BHP Group (-2.3%) and Rio Tinto (-2.0%) dipped as copper prices slid to their lowest since July, amid worries over potential shifts in U.S. policy following Democratic gains in the midterm elections. Still, early losses narrowed as some investors rotated into defensive stocks. Goodman Group fell 3.2% on fears that U.S. restrictions could curb data center construction. Macquarie Group (-3.7%) and Reece (-3.1%) also lost. In contrast, the four big banks rose 0.6%–2.7%, while Woolworths added 1.8%. For the week, the ASX 200 extended previous gains, up by 1.3%, on a surging trade surplus in September.

Australian equities fell 69 points or 0.8% to 8,996 in early trade on Friday, reversing a strong rally in the previous session that lifted the market to a near two-month high. Profit-taking followed an overnight Wall Street sell-off as investors accelerated their retreat from technology stocks amid growing concerns over a potential slowdown in data-center investment. Local technology stocks came under pressure, while mining and materials shares also declined. Among individual stocks, Sandfire Resources plunged 6.4%, followed by Sims Ltd. (-6%), Goodman Group (-4%), and South32 (-3.4%). Heavyweights BHP Group and Rio Tinto also fell 3.5% and 3.2%, respectively. In contrast, the four major banks advanced between 1.3% and 3.1%. Despite the pullback, the ASX 200 remained on track for a second consecutive weekly advance, up around 1%, supported by a solid September trade surplus, recovering personal spending, and steady private credit growth.

The ASX 200 surged 231 points or 2.6% to close at 9,065 on Thursday, reversing prior losses and reaching a two-month high. Sentiment improved following a Wall Street rally Wednesday after a Democratic sweep in the U.S. midterm elections boosted global risk appetite. Most sectors in Australian markets advanced, led by tech, non-energy minerals, and healthcare. Nextdc jumped 51% after saying stake-building by entities linked to Goodman Group and Digital Realty was opportunistic rather than a takeover bid. Mining giants BHP Group (6.2%) and Rio Tinto (7%) also rallied as copper and iron ore prices rebounded. Higher gold prices and a weaker U.S. dollar also lifted Northern Star Resources (9.9%) and Evolution Mining (14.2%). Further, Qantas Airways (6.2%) and Virgin Australia (11.2) advanced solidly, amid lower oil prices. Conversely, energy stocks slumped, with Woodside Energy falling 6.0% and Santos losing 5.4%. Three of the four major banks also declined, shedding between 0.6% and 5.4%.