The ASX 200 fell 73 points, or 0.8%, to close at 9,115 on Friday, its third consecutive decline and the lowest close in more than a week. Risk sentiment weakened as U.S. equity futures retreated after President Trump announced new tariffs on drone imports, widely viewed by analysts as primarily targeting China.
Adding to the cautious tone, U.S. Treasury Secretary Bessent on Thursday warned of unprecedented measures against Iran, vowing “economic isolation like the world has never seen.”
On the domestic front, Australian housing lending in Q2 fell to its lowest level in three quarters, although the pace of contraction moderated compared with the previous period. Investors now turn their focus to July labor market data due next week, after the unemployment rate held steady in June.
Sector performance was broadly negative, with steep declines in transport, industrials, healthcare, and non-energy minerals. Major miners BHP and Rio Tinto lost 3.4% and 2.9%, respectively, while three of the four big banks also retreated. Gold miners underperformed, with Evolution Mining down 4.0% and Northern Star off 3.2%.
For the week, the ASX 200 dropped 1.6%, wiping out gains accumulated over the previous three weeks.
