FX.co ★ ASX 200 Drops 1% at Close

The ASX 200 dropped 100 points, or 1.1%, to close at 8,686 on Thursday, reversing the prior session’s gains and pulling back from a one-month high as investors locked in profits. Geopolitical risks flared again in the Middle East after Tehran struck Kuwait’s airport and U.S. forces targeted sites near the Strait of Hormuz. On the domestic front, the Reserve Bank of Australia reiterated its vigilance as headline inflation remained at 4.2% in April, above its 2–3% target band, while Q1 GDP growth slowed markedly. Even so, the decline was partly offset by April trade figures showing Australia had returned to a surplus, supported by a rebound in exports and softer imports. Sector-wise, commercial services, non-energy minerals, and manufacturing led the losses. Heavyweights BHP and Rio Tinto fell 3.2% and 3.7%, respectively—their weakest levels since mid-May—after hitting record highs just a day earlier. Technology stocks also weakened in line with the Nasdaq, with WiseTech down 5% and Xero off 3%. By contrast, energy stocks outperformed as higher oil prices supported gains in Woodside Energy (up 0.3%) and Santos (up 0.8%).