Australian equities advanced 29 points, or 0.3%, to 8,633 in Wednesday morning trade, snapping a three-session losing streak on strength in logistics, consumer services, and retail stocks. Market sentiment was buoyed by strong May trade data from China, Australia’s largest trading partner, where exports reached a record high and imports accelerated.
On the domestic front, Australia’s trade position improved in April as exports rebounded, pushing the balance back into surplus. Hopes also firmed that the Reserve Bank of Australia will keep the cash rate on hold next week after three hikes earlier this year.
Upside was limited, however, as U.S. stock futures weakened amid renewed tensions in the Middle East following Washington’s latest “self-defense strikes” on Iran in retaliation for the downing of a helicopter on Tuesday.
Early outperformers included PLS Group (up 2.0%), Insurance Australia Group (1.9%), and Medibank Private (1.2%), while two of the big four banks posted modest gains. Investors are now looking ahead to China’s May CPI and PPI releases later today, against a backdrop of mounting inflationary pressures in recent months.
