Australia’s ASX 200 fell 37 points, or 0.4%, to close at 8,665 on Friday, extending losses into a second straight session as traders turned cautious ahead of next week’s Reserve Bank policy meeting. Persistently high inflation has reinforced expectations of additional interest rate hikes after three increases earlier this year. Markets are also awaiting August inflation figures, following a stronger-than-expected July print that remained above the RBA’s 2–3% target band.
Recent labor market data for August painted a mixed picture: the unemployment rate climbed to 4.6%, its highest level in nearly five years, even as overall employment rose by more than economists had forecast.
Externally, sentiment was dampened by developments in the U.S., where a summit between President Trump and Chinese leader Xi Jinping failed to deliver progress on major geopolitical disputes, despite an agreement to extend their existing trade truce.
On the local bourse, losses were broad-based, with most sectors retreating, led by technology, consumer services, and logistics stocks. Heavy declines were recorded in Mineral Resources (-4.8%), PLS Group (-3.7%), REA Group (-3.2%), and Xero (-2.8%). For the week, the ASX 200 slipped 0.8%, notching its fourth consecutive weekly decline.
