Australian shares reversed a three-session rise as stronger June jobs data kept Reserve Bank tightening expectations elevated, with investors also awaiting next week’s inflation figures for clues on interest rates.
Australia’s ASX 200 closed down 67 points, or 0.75%, at 8,772 on Friday, reversing gains from the previous three sessions and leaving the benchmark down 0.3% for a third straight weekly decline. Sentiment was hit by a technology-led Wall Street sell-off and by domestic concerns after strong June employment data reinforced expectations that the Reserve Bank, Australia’s central bank, could tighten policy further after raising cash rates three times this year to 4.35%. Investors are now focused on June and second-quarter inflation data due next week. Technology stocks including Xero, Wisetech Global and Megaport led losses, while gold miners Northern Star Resources and Evolution Mining also fell after rising the previous session. The big four banks outperformed, and energy shares strengthened as oil climbed above USD 100 amid escalating Middle East tensions and U.S. President Donald Trump’s warning of “major military punishment” against Iran following Houthi-linked tanker attacks.