Australian shares advanced 34 points, or 0.4%, to 9,001 in early Friday trade, rebounding from the prior session’s weakness after Wall Street rallied overnight, as heavyweight chipmakers surged on renewed bets the AI-driven bull run still has legs.
Gains were led by tech, non-energy minerals, industrial services, and utilities, though healthcare and consumer non-durables weighed.
However, gains were capped by lingering caution over whether three rate hikes this year from the Reserve Bank will prove sufficient, with their full impact yet to filter through the economy.
Standouts included BHP Group (2.4%), Lynas Rare Earths (4.7%), and Sandfire Resources (3.2%), while the big four banks added between 0.1% and 0.6%.
Local markets are on track for weekly gains of more than 2%, reversing three straight weekly declines and setting up a fourth monthly rise.
Momentum has been underpinned by easing inflation concerns and signs of resilience in manufacturing and services activity through July.