Australian shares climbed 62 points, or 0.7%, to 8,727 in early trade on Friday, the first session of May, breaking an eight-day losing streak and rebounding from a three-week low. Broad-based bargain hunting underpinned the advance, led by non-energy minerals and industrial services. An upward revision to April’s manufacturing PMI also supported sentiment, even as output remained weak and underlying demand at home and abroad was subdued.
U.S. equity futures also firmed after the S&P 500 and Nasdaq closed at record highs on Thursday, buoyed by strong earnings from Apple and Caterpillar despite soft economic data and ongoing geopolitical uncertainty.
Among local movers, Lynas Rare Earths gained 3.1%, BHP Group rose 2.8%, Evolution Mining advanced 2.2%, and Fortescue added 1.4%.
Despite Friday’s bounce, the market remains on track for a third consecutive weekly decline, down about 0.7% so far this week, as persistent inflation pressures continue to weigh. Investors are also wary that the Reserve Bank may deliver another cash rate increase at its meeting next week.
