20.08.202606:40:41UTC+00ASX 200 Recovers from Recent Weakness

Australia’s ASX 200 climbed 30 points, or 0.3%, to close at 9,084 on Thursday, ending a six-session losing streak. Sentiment was supported by gains in consumer durables, non-energy minerals, and healthcare, alongside a modest uptick in U.S. equity futures after the U.S. Treasury said it would double purchases of longer-dated debt to help contain yields.

The local market rebounded from a two-week low as China, Australia’s largest trading partner, kept key lending rates at record lows for a 15th straight month to bolster growth. Even so, domestic headwinds limited the advance. Employment unexpectedly declined in July, pushing the jobless rate to a three-month high, while August inflation expectations rose from July’s six-month trough. That reinforced concerns over persistent price pressures, with trimmed mean CPI up 3.6% year-on-year in June, the fastest pace since September 2024.

Miners outperformed, led by BHP, up 2.5%, and Rio Tinto, up 1.6%. Northern Star Resources jumped 5.9% after reporting a 24% increase in profit. In contrast, the big four banks fell between 1.5% and 2.5%. Traders now turn their attention to Friday’s flash PMI releases for August.