ASX 200

ASX Preview: Australian Shares Likely to Drop; HealthCo Healthcare and Wellness REIT Discloses Mount Private Hospital Agreement

Australian shares are set to drop on Thursday as the major Wall Street indices reached new records on fractional gains.Overnight, the S&P 500 and the Nasdaq Composite rose just 0.02% and 0.1%, respectively, reaching new record highs, while the Dow Jones Industrial Average rose 0.4%.Brent crude oil futures traded under $95 per barrel as investors await developments around a potential US-Iran peace deal.In the macroeconomy, Australia's consumer price index rose 4.2% in the 12 months to April, down from a 4.6% increase in the year to March, the Australian Bureau of Statistics reported Wednesday. Trimmed mean inflation came in at 3.4% in the 12 months to April, up from 3.3% in the year to March.The monthly household spending indicator data is expected to be released at 9:30 am Sydney time.In corporate news, HealthCo Healthcare and Wellness REIT (ASX:HCW) said the Unlisted Healthcare Fund and troubled hospital operator Healthscope reached an agreement with Bethesda Health Care for the Mount Private Hospital in Western Australia.Shape Australia (ASX:SHA) agreed to acquire Australian Professional Shopfitters from Handa Manufacturing for up to AU$29.4 million.Forrestania Resources (ASX:FRS) identified high-grade gold mineralization during a recent drilling at its Lady Lila gold project in Western Australia. The results were up to 21 meters at 2.5 grams per tonne gold from 21 meters, including one meter at 15.9 grams per tonne gold from 21 meters.Australia's benchmark S&P/ASX 200 Index increased by 0.7%, or 59.9 points, to close at 8,717.70 on Wednesday.

Australia Inflation Data Shows Just Modest Signs of Higher Input Costs Flowing Through to Broader Inflation Basket, ANZ Says

April's inflation data for Australia showed only modest signs that higher input costs were flowing through to the broader inflation basket, ANZ Research said in a note on Wednesday.Australia's consumer price index (CPI) rose 4.2% in the 12 months to April, down from a 4.6% increase in the year to March, the Australian Bureau of Statistics reported. Trimmed mean inflation came in at 3.4% in the 12 months to April, up from 3.3% in the year to March.On a three-month annualized basis, trimmed mean inflation is only just above the top of the central bank's target band, at 3.1%. There were signs of second-order impacts materializing, but they were relatively contained to expenditure categories.The fact that there was little evidence of a rise in purchase price growth flowing through to the April CPI data suggests that it may be more challenging for businesses to pass on costs quickly.The major supermarkets lifted the price of foods such as milk in late April, which may lead to inflation accelerating in the food group in May.It continues to expect the Reserve Bank of Australia to keep rates on hold at 4.35%.

Australian Shares Up; Endeavour Group Targets AU$300 Million of Cost Savings by Fiscal Year 2029, to Exit Non-Core Winery, Agricultural Assets

Australian shares rose on Wednesday as the US stock indices reached new records overnight.The S&P/ASX 200 Index increased by 0.69%, or 59.90 points, to close at 8,717.70.Brent crude oil futures hovered around $98 per barrel as investors expected progress for a peace agreement between the US and Iran.The S&P 500 and the Nasdaq Composite rose 0.6% and 1.2%, respectively, hitting record highs.On the domestic front, Australia's consumer price index rose 4.2% in the 12 months to April, down from a 4.6% increase in the year to March, the Australian Bureau of Statistics reported. Trimmed mean inflation came in at 3.4% in the 12 months to April, up from 3.3% in the year to March.The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index slipped deeper into negative territory, declining to about -0.2% in April from -0.1% in March, according to a Westpac report.In company news, Endeavour Group (ASX:EDV) is targeting AU$300 million of cost savings to be delivered by fiscal year 2029. It also plans to exit or sell non-core winery, as well as agricultural assets, reduce its own grape production by over 80%, and concentrate investment on high-performing brands with proven retail demand within its Pinnacle Drinks business.The Australian Federal Court ordered Westpac Banking (ASX:WBC, NZE:WBC) to pay AU$26 million in civil penalties after failing to respond to over 200 online hardship requests within the time required by law from 2017 to 2023.Lastly, KMD Brands (ASX:KMD, NZE:KMD) reported a 5.2% jump in fiscal third-quarter sales, helped by strength in its flagship Kathmandu segment, even as its footwear business Oboz saw a decline amid geopolitical and market tensions. Its board is also conducting a business review to improve shareholder returns.

Australia's Total Construction Activity Rises Sequentially in March Quarter

Australia's total construction work done in seasonally adjusted terms rose 3.4% to AU$83.36 billion in the March quarter from AU$80.01 billion in the previous quarter, the Australian Bureau of Statistics reported Wednesday.Total construction work climbed 6.3% year over year in the March quarter.Total building construction work in the March quarter rose 0.6% to AU$44.71 billion compared with the previous quarter. Total engineering construction work in the March quarter rose 6.9% from the December 2025 quarter to AU$38.65 billion.Residential building construction activity fell 0.6% quarter over quarter to AU$27.06 billion, while non-residential building construction activity rose 2.5% to AU$17.65 billion.The trend estimate for total construction work done rose 0.5% in the March quarter.

ASX Midday Sector Update: Information Technology Stocks Advance, Financial Sector Struggles

Information technology stocks advanced nearly 2% at midday Wednesday.Xero (ASX:XRO) shares rose marginally in recent trade as AustralianSuper's voting power in the company increased to 9.17% from 8.13%, effective May 22.On the flip side, the financial sector struggled, shedding more than 1%.Shares of Commonwealth Bank (ASX:CBA) fell past 1% in recent trade.

Australia Inflation Slows Down in April

Australia's consumer price index (CPI) rose 4.2% in the 12 months to April, down from a 4.6% increase in the year to March, the Australian Bureau of Statistics reported Wednesday.The largest contributors to annual inflation were housing, up 6.3%, followed by transport, which increased 6.6%, and food and non-alcoholic beverages, which jumped 2.8%.The impact of higher oil prices was "seen in products and services with high freight and logistics costs, such as parcel delivery and building materials," said Sue-Ellen Luke, the bureau's head of prices statistics.Trimmed mean inflation came in at 3.4% in the 12 months to April, up from 3.3% in the year to March.Annual goods inflation declined to 4.7% in the year to April from 5.5% in March, while services inflation fell to 3.5% from 3.6%, per the report.Of the 11 groups in the CPI, seven experienced a slowdown in annual growth in April compared with March, with transport prices moderating the most.Annual housing inflation was 6.3% in the 12 months to April, reflecting rising costs for electricity, new dwellings, and rents.Electricity costs were 22.5% higher than 12 months ago, primarily related to the end of the Australian government and state-level rebates.On a month-on-month basis, the consumer price index grew 0.4% in April from a 1.1% increase in March.Automotive fuel prices fell 7% in the month to April, after rising 32.8% in March. They are still 23.5% higher than in February, and before the impact of the Middle East conflict, Luke added. Automotive fuel was excluded from the trimmed mean in both March and April.

Australia's Leading Index Slips Deeper into Negative Territory

The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index slipped deeper into negative territory, declining to about -0.2% in April from -0.1% in March, according to a Westpac report on Wednesday.The index forecasts the expected pace of economic activity compared with trend levels three to nine months into the future.Australia is projected to face a prolonged period of sluggish, below-trend growth for the rest of the year and into early 2027, marking the first back-to-back below trend read since late 2024.The last six months has seen the leading index growth rate swing 0.3 percentage points to about -0.2% from roughly +0.2% in November due to a sharp weakening in consumer sentiment.The Westpac-Melbourne Institute Consumer Expectations Index has slumped 20% after reaching a four-year high late last year, per the report.

Australia's Annual Inflation in Year to April at 4.2% Versus 4.6% in Year to March

ASX Preview: Australian Shares Set to Start Flat Ahead of Inflation Data; KMD Brands Posts Higher Fiscal Q3 Sales, Launches Business Review

Australian shares are poised to be little changed on Wednesday as key inflation data for April is set to be released.Overnight, the S&P 500 and the Nasdaq Composite rose 0.6% and 1.2%, respectively, hitting record highs, while the the Dow Jones Industrial Average declined 0.2%.Brent crude oil futures rose over 3% to reach $99.53 per barrel as optimism around a potential US-Iran peace deal wavered.In the macroeconomy, one in six Australian businesses was experiencing supply chain disruptions in May, with about 72% reporting a negative impact from current fuel prices or availability, according to a business conditions and sentiments report by the Australian Bureau of Statistics on Tuesday.Australia's the consumer price index data for April is due at 11:30 am Sydney time.In corporate news, KMD Brands (ASX:KMD) reported a 5.2% jump in fiscal third-quarter sales, helped by strength in its flagship Kathmandu segment, even as its footwear business Oboz saw a decline amid geopolitical and market tensions. Its board is also conducting a business review to improve shareholder returns.Tivan (ASX:TVN) received initial assay results from its regional-scale stream sediment sampling program at the Turiscai project in East Timor, returning grades of up to 434 parts per million copper and 0.801 parts per million.Australia's benchmark index declined 0.4%, or 34.2 points, to close at 8,657.80 on Tuesday.

Australian Shares Fall; Santos to Target Capital Expenditure Reduction of Around AU$300 Million from 2027 to 2030

Australian shares fell on Tuesday as optimism around a potential deal to end the conflict in the Middle East wavered after fresh US strikes.The S&P/ASX 200 Index declined 0.39%, or 34.20 points, to close at 8,657.80.Brent crude oil futures rose around 2% to trade around $98 per barrel after the US military carried out strikes in Iran against targets including missile launch sites and boats, which the US characterized as defensive in nature.US Secretary of ​State Marco Rubio said negotiating a deal with Iran could "take a few days."On the domestic front, one in six Australian businesses was experiencing supply chain disruptions in May, with about 72% reporting a negative impact from current fuel prices or availability, according to a business conditions and sentiments report by the Australian Bureau of Statistics (ABS).ABS said 60% of businesses made changes to operations due to fuel prices or availability, with 48% absorbing cost increases and 11% increasing prices. Agriculture, forestry, and fishing recorded the highest proportion of businesses experiencing supply chain disruptions at 42%, followed by retail trade at 31%.Australian consumer confidence fell 0.3 points in the week of May 18 to 24 to 66.1 points, as confidence remains around historical lows since the series started in 1973, ANZ said. The four-week moving average eased 0.4 points to 66 points.In company news, Santos (ASX:STO) is set to prioritize upstream investment in the Moomba Central fields area in South Australia and deprioritize the broader Cooper Basin, targeting cumulative capital expenditure reduction of around AU$300 million from 2027 to 2030, and AU$150 million savings annually thereafter.Goodman Group (ASX:GMG) reported a work-in-progress value of AU$14.5 billion as of March 31, saying it expects the figure to reach around AU$18 billion by June. Data centers represent 73% of the March 31 work in progress. The work in progress is 37% pre-committed.Lastly, Infratil (ASX:IFT, NZE:IFT) swung to a profit of NZ$0.558 per share in fiscal 2026 from a loss of NZ$0.315 a year earlier. Revenue for the 12 months ended March 31 was NZ$3.04 billion, compared with NZ$2.86 billion a year earlier.

ASX Most Active Stocks

Here are the five most actively traded big-cap stocks on the Australian Securities Exchange on Tuesday.Arafura Rare Earths (ASX:ARU): 41.2 million sharesPredictive Discovery (ASX:PDI): 37.4 million sharesTabcorp Holdings (ASX:TAH): 13.8 million sharesTelstra Group (ASX:TLS): 8.9 million sharesLindian Resources (ASX:LIN): 7.7 million shares

ASX Biggest Gainers

Here are the ASX-listed companies with the biggest gains on Tuesday.Fisher & Paykel Healthcare (ASX:FPH): +7%, AU$29.55NRW Holdings (ASX:NWH): +3%, AU$7.46Capstone Copper (ASX:CSC): +2%, AU$14.23Wesfarmers (ASX:WES): +2%, AU$77.31Ventia Services Group (ASX:VNT): +2%, AU$6.28Southern Cross Gold (ASX:SX2): +2%, AU$9.86Sims (ASX:SGM): +2%, AU$24.61Alcoa (ASX:AAI): +2%, AU$100.97Codan (ASX:CDA): +2%, AU$41.23Eagers Automotive (ASX:APE): +1%, AU$22.25

ASX Biggest Losers

Here are the ASX-listed companies with the biggest losses on Tuesday.ASX (ASX:ASX): -12%, AU$51.51Elevra (ASX:ELV): -7%, AU$12.75PEXA Group (ASX:PXA): -7%, AU$10.67Infratil (ASX:IFT): -5%, AU$12.29Yancoal Australia (ASX:YAL): -4%, AU$6.69Telix Pharmaceuticals (ASX:TLX): -4%, AU$12.82Challenger (ASX:CGF): -4%, AU$8.89Whitehaven Coal (ASX:WHC): -4%, AU$8.51Netwealth Group (ASX:NWL): -3%, AU$21.69Paladin Energy (ASX:PDN): -3%, AU$11.13

ASX Midday Sector Update: Consumer Discretionary Stocks Inch Up, Utilities Sector Struggles

Consumer discretionary stocks advanced marginally at midday Tuesday.Wesfarmers (ASX:WES) shares rose nearly 2% in recent trade.Meanwhile, the utilities sector struggled, shedding nearly 2%.Origin Energy (ASX:ORG) shares were down 2% in recent trade.

Rising Fertilizer, Fuel Prices Likely to Eventually Lift Food Inflation, ANZ Says

Rising fertilizer and fuel prices in the wake of the conflict in the Middle East are squeezing farm margins, which is likely to curb input application rates, weaken crop yields, lower crop production, and eventually lift food inflation, ANZ Research said in a Tuesday report.In the year to date, fertilizer prices are up nearly 30% in the US, remaining just under 20% below the peak reached in early 2022, per the report. Fertilizer prices are up even higher in other markets.Australia's wheat area is already set to shrink, with production facing further downside if tighter input supply and El Niño climate conditions worsen. Higher fertilizer costs will also accelerate a shift away from fertilizer-intensive grains towards oilseeds and pulses. Fertilizer intensity for corn and rice is around three times higher than that for soybeans and pulses.The Bloomberg Grains Subindex is showing year-to-date gains of only 5% to 6%. This is squeezing farm profitability globally, ANZ said. Grain prices are expected to rise gradually and remain higher for longer if there is no de-escalation of the conflict.With the latest surge in prices, demand is expected to moderate by around 3% to 199 million tonnes in 2026, ANZ said. Countries that rely heavily on fertilizer imports from the Persian Gulf, such as Australia and New Zealand face supply bottlenecks.Australia imports around 85% of its fertilizer needs, and over 60% of the urea used in Australia's fertilizers is sourced from the Middle East. The area planted with wheat is estimated to fall 5% year over year to 11.8 million hectares. If weather conditions deteriorate, wheat production could fall by over 20%, ANZ said.

One in Six Australian Businesses Saw Supply Chain Disruptions in May, ABS Data Shows

One in six Australian businesses was experiencing supply chain disruptions in May, with about 72% reporting a negative impact from current fuel prices or availability, according to a Tuesday business conditions and sentiments report by the Australian Bureau of Statistics.The bureau said 60% of businesses made changes to operations due to fuel prices or availability, with 48% absorbing cost increases and 11% increasing prices. Agriculture, forestry, and fishing recorded the highest proportion of businesses experiencing supply chain disruptions at 42%, followed by retail trade at 31%, the report added.Industries reporting the largest negative impact from fuel prices included transport, postal and warehousing at 55% and agriculture, forestry and fishing at 51%, the report added.Just over one in four businesses made changes to their workforce in response to fuel prices, with 15% reducing or suspending non-essential travel and 9% reducing the size of their workforce, while one in six businesses reported delaying or cancelling capital investment plans, the report added.Over one third of businesses reported revenue had decreased over the previous four weeks, with more than one quarter expecting revenue to decrease over the next four weeks, and over one third expecting operating expenses to increase over the same period, it added.

Australian Consumer Confidence Falls, Remains Around Historical Lows

Australian consumer confidence fell 0.3 points in the week of May 18 to 24 to 66.1 points, as confidence remains around historical lows since the series started in 1973, according to a Tuesday note from ANZ.The four-week moving average eased 0.4 points to 66 points.Weekly inflation expectations were up 0.1 percentage point to 6%, while the four-week moving average fell to 6.3%.Current financial conditions over the last year declined 3.5 points to 57.3, while financial conditions over the next 12 months decreased 2.1 points to 72.9.Confidence in economic conditions showed a slight improvement, potentially influenced by news of the prospect of a US-Iran deal, ANZ economist Sophia Angala said.Short-term economic confidence over the next 12 months was down 0.8 points to 56.9, while medium-term economic confidence over the next five years rose 1.2 points to 75.4.The "time to buy a major household item" sub-index increased 4 points to 68.1, per the report.

ASX Preview: Australian Shares Set to Rise as Oil Falls on Easing Middle East Tensions; Mineral Resources, Ganfeng Approve AU$490 Million Expansion Project

Australian shares are poised to rise on Tuesday after oil prices tumbled nearly 7% on easing Middle East risk sentiment, as optimism grew over US-Iran talks and a potential reopening of the Strait of Hormuz.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 0.4%, 0.2%, and 0.6%, respectively.In the macroeconomy, the ANZ-Roy Morgan Australian consumer confidence fell 0.3 points to 66.1 in the week of May 18 to May 24, ANZ reported Tuesday.Australia's business conditions and sentiments report is due at 11:30 am Sydney time.In corporate news, Mineral Resources (ASX:MIN) and joint venture partner Jiangxi Ganfeng Lithium approved a final investment decision to build a new flotation plant and develop underground mining at the Mt Marion lithium operation in Western Australia, with total capital investment estimated at AU$490 million.Flight Centre Travel Group (ASX:FLT) said the Middle East conflict has "heavily impacted" its early fiscal fourth quarter results, including an estimated AU$10 million profit impact to leisure segment results in April.Australia's benchmark index rose 0.4% or 35 points to close at 8,692 on Monday.

Asia Week Ahead: Policy Rate Decisions, Inflation Prints and GDP Reports

Asia's economic calendar this week features a mix of inflation data, interest rate decisions, GDP releases and industrial figures across the region.The week opens with Singapore's GDP and inflation data, plus Thailand's trade figures, followed on Tuesday by Taiwan's industrial production and retail sales reports.Mid-week, attention turns to the Reserve Bank of New Zealand's policy decision and Australia's inflation print. On Thursday, the Bank of Korea will announce its rate decision, while Hong Kong releases trade data and India reports industrial and manufacturing output figures.Friday will be the busiest day for macro releases, led by a batch of key indicators from Japan. The week wraps up with China's PMI readings on Sunday.Here's what to watch in the week ahead.MONDAY, May 25Singapore's economy grew 6.0% year over year in the first quarter, government data showed, beating the 4.6% flash estimate and accelerating from the 5.7% growth in Q4.The expansion was driven by strong performances in the wholesale trade, manufacturing, and finance and insurance sectors.Meanwhile, the city-state's annual inflation rate held steady at 1.8% in April, unchanged from March but below market expectations of 2%.Core inflation, on the other hand, eased to 1.4% in April from 1.7% a month prior.In Thailand, exports surged 23.1% year over year to $31.6 billion in April, accelerating from an 18.7% increase in March and beating forecasts of 16.2%.Imports likewise strengthened, expanding 45% in April to $41.6 billion, compared with a rise of 35.7% a month prior.As a result, the trade deficit ballooned to $10.02 billion in April from $3.3 billion a year earlier, far above forecasts of a $5.1 billion shortfall.TUESDAY, May 26Singapore will release its April industrial production data, while Taiwan is due to report both industrial production and retail sales figures for the month.WEDNESDAY, May 27New Zealand's central bank will hold its policy meeting, with analysts expecting no change to the country's official cash rate of 2.25%, according to a Trading Economics consensus.Australia is set to release inflation figures on the same day. Consumer prices rose 4.6% year on year in March, the fastest pace since September 2023, and are expected to accelerate to 5.1% in April as oil prices climb amid the Middle East conflict.Meanwhile, China will report its industrial profits for April. A pair of confidence reports covering business and consumer sentiment will be due in South Korea and Taiwan, respectively.THURSDAY, May 28The Bank of Korea is set to meet for its policy rate decision, with markets watching for any change to its current 2.5% benchmark rate amid inflation and growth pressures linked to the ongoing conflict in the Middle East.Hong Kong will release its monthly trade figures. The April reading could show a narrowing of the trade deficit to HK$46 billion from HK$89.1 billion in March, Trading Economics forecasted.Meanwhile, India will report its industrial and manufacturing production data for April.Markets will also watch New Zealand's ANZ Business Confidence report for May, after the index dropped to -10.6 in April -- its first negative reading since August 2023 -- as the Middle East conflict weighed on sentiment.FRIDAY, May 29Japan's usual end-of-month data deluge, which includes the release of inflation, unemployment rate, industrial production and retail sales, will provide insights into the country's economic health.Markets will also watch Taiwan's final Q1 GDP growth figures for any revision from the preliminary estimate, which showed the economy expanding by 13.7%.Other highlights include trade balance figures from Macau and the Philippines, and export and import price data from Singapore.Both South Korea and Thailand will report their monthly industrial production and retail sales stats, while Macau will report its unemployment rate for April.Lastly, a report capturing business confidence in April will be due in the Philippines.SUNDAY, May 31China, the biggest economy in Asia, will release its official May PMI data covering manufacturing, non-manufacturing and general activity.