Australian shares fell 57 points, or 0.7%, to 8,783 in Friday morning trade, extending the previous session’s muted performance. The market tracked overnight declines on Wall Street as risk sentiment deteriorated following an escalation in the Middle East conflict, after the U.S. launched a fresh round of airstrikes on Iran.
Domestically, traders turned cautious ahead of next week’s June labour market report, after May delivered the strongest jobs growth in five months, even as the unemployment rate remained near a four-year high.
Losses were partly limited by optimism that China, Australia’s largest trading partner, may announce additional stimulus at the late-July Politburo meeting to counter weaker-than-expected Q2 GDP growth.
Sector-wise, electronic technology, non-energy minerals, and manufacturing led the decline, while energy minerals, retail trade, and process industries provided some support. Among major names, BHP Group dropped 2.6%, with notable falls also in Northern Star Resources (-3.7%), Evolution Mining (-4.4%), and South32 (-3.2%).
For the week, the index is on track for a 0.2% loss, adding to the previous week’s decline.
