Australian shares rose 34 points, or 0.4%, to 9,001 in early Friday trade, rebounding from the previous session’s weakness after Wall Street rallied overnight. The advance followed strong gains in major US chipmakers, as investors renewed bets that the AI-driven bull run still has further to go. Sector gains were led by technology, non-energy minerals, industrial services, and utilities, while healthcare and consumer non-durables lagged and weighed on the broader market.
Upside was limited by lingering uncertainty over whether the Reserve Bank’s three interest rate hikes this year will be sufficient, with their full economic impact yet to be felt. Notable outperformers included BHP Group (up 2.4%), Lynas Rare Earths (up 4.7%), and Sandfire Resources (up 3.2%), while the big four banks rose between 0.1% and 0.6%.
Local equities remain on course for weekly gains of more than 2%, snapping three consecutive weekly declines and positioning the market for a fourth straight monthly advance. The recent momentum has been underpinned by easing inflation concerns and evidence of resilience in both manufacturing and services activity through July.
