Australia’s ASX 200 fell 56 points, or 0.6%, to close at 8,723 on Wednesday, the first day of the new financial year. The index extended the previous session’s losses, pressured by a sharp decline in U.S. stock futures after a strong first half of 2026 on Wall Street, driven largely by sustained gains in chipmakers.
Investor caution persisted ahead of May trade figures due Thursday, following April data that showed exports outpacing imports to produce a modest surplus. Domestically, building approvals declined for a third consecutive month in May, marking the fourth monthly contraction so far this year.
Minutes from the central bank’s June meeting indicated that further monetary tightening remains on the table after three rate hikes since January, as policymakers pointed to rising cost pressures in the second quarter.
Most sectors finished lower, led by commercial services, financials, logistics, and consumer-related stocks. The big four banks dropped between 1.5% and 2.5%. Among individual names, Greatland Resources lost 4.7%, Coles Group fell 4.2%, and Xero declined 2.8%. In contrast, South32 jumped 9.7% after agreeing to sell the bulk of its aluminium assets to Alcoa.
