SYDNEY, May 24, 2026, 16:26 (AEST)
- ASX 200 closed Friday 0.41% higher at 8,657. The index was up 0.3% for the week.
- Traders are watching April inflation figures due Wednesday after soft jobs data took pressure off the RBA to lift rates.
- Oil, U.S. yields, and China numbers are still the main outside risks for miners, banks, and consumer shares.
ASX traders are watching Wednesday’s April inflation release, with last week’s bounce in banks and retailers now in play. The cash market is shut for the weekend, with regular ASX trading wrapping up on business days at 4:00 p.m. Sydney. The 2026 ASX calendar puts the next full day off for the cash market at King’s Birthday, June 8.
S&P/ASX 200 finished up 35.3 points, or 0.41%, at 8,657 on Friday. That put the index up 0.3% for the week after swinging down to a seven-week low earlier. The All Ordinaries advanced 0.41% to finish at 8,877.2. Late Friday, the Australian dollar was buying 71.36 U.S. cents.
Rates are back in focus. The Reserve Bank of Australia raised its cash-rate target by 25 basis points to 4.35% on May 5, pointing to higher fuel and commodity prices tied to the Middle East conflict and evidence that companies are passing along costs. A strong CPI could push the case for more rate hikes.
Jobs data brought some relief to the market last week. The Australian Bureau of Statistics reported employment dropped by 18,600 in April, with unemployment at 4.5%, up from 4.3%. “More people remained unemployed this month,” Sean Crick, ABS head of labour statistics, said. Australian Bureau of Statistics
HSBC Australia chief economist Paul Bloxham said “today’s figures look fairly decisive” and expects the RBA to stay on hold “for some time.” The tone shifted after the release. ABC News
Softer jobs data gave “interest rate-sensitive sectors” some help, IG market analyst Tony Sycamore told AAP. Miners and energy traded firmer on Friday. BHP, Evolution Mining and South32 came up as main supports for the index, according to Sycamore. Morningstar
Materials led Friday’s sector move, up 1%, according to ABC data. Industrials and Energy were also higher. Telecommunications, Utilities and Consumer Discretionary dropped. Guzman y Gomez gained 9.6% after deciding to quit its Chicago locations and leave the U.S. market.
Inflation still tough. March CPI climbed 4.6% year on year, up from February’s 3.7%. Housing, transport and food led gains. Trimmed mean inflation stayed at 3.3%. The ABS lists Wednesday for the April CPI release.
Westpac economist Neha Sharma is forecasting April headline CPI up 0.9% on the month and 4.8% from a year earlier, according to ABC. Sharma pointed to “signs of emerging pass-through” from higher costs, noting fuel surcharges and price notices for construction materials. ABC News
Global markets look busy as well. According to IG’s week-ahead calendar, U.S. core PCE, the Fed’s main inflation number, is due out Thursday night Sydney time, along with U.S. GDP, durable goods data and jobless claims. China’s official manufacturing PMI comes next Sunday and is key for Australia’s mining stocks.
ASX picks up a stronger offshore lead after Wall Street closed higher heading into the weekend. Reuters said the Dow finished at a record high Friday and the S&P 500 pushed through its eighth weekly gain. U.S. 10-year Treasury yields fell to 4.558%. “Macro conditions may be a bigger factor” with earnings season winding down, Anthony Saglimbene at Ameriprise told Reuters. Reuters
But the setup is fragile. A stronger Australian CPI could bring rate-hike risk back and put pressure on banks, property, and retail stocks. A spike in oil or bond yields would hurt that trade too. Reuters said investors are still worried the U.S.-Israeli war with Iran may disrupt energy and drive up core prices, forcing tighter policy.
