After a sharp upmove, the Australian stock market pared some gains on Friday with a section of investors choosing to take some profits after recent strong gains. The mood, however, remains a bit bullish at present following a positive close on Wall Street overnight.
Mining, utilities and industrial stocks are trading firm, while financial and energy stocks are exhibiting a mixed trend.
The benchmark S&P/ASX 200 index, which rose to 4,558.7 in early trades, is currently up 4.3 points or 0.1% at 4,537. The broader All Ordinaries index is up 11 points or 0.2% at 4,574, around 15 points off the day's high of 4,589.1.
On Thursday, the S&P/ASX 200 index added 37 points or 0.8% to close at 4.532.7, while the All Ordinaries index ended up 36.2 points or 0.8% at 4,583.
Among mining stocks, BHP Billiton is up 0.5%, Rio Tinto is gaining about 0.7% and Newcrest Mining is up with a gain of 1.6%, while Fortescue Metals is down in negative territory with a marginal loss.
In the energy space, Woodside Petroleum and Oil Search are up with modest gains, while Santos and Origin Energy are trading flat.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac are down 0.8%-1.3%. Bank of Queensland and Bendigo & Adelaide Bank are trading lower by 0.6% and 0.7% respectively. However, Macquarie Group is in positive territory with a gain of almost 2%.
Nufarm is trading over 2% down on reports the shareholders are likely to launch a class action against the company for allegedly misleading conduct relating to profit forecasts. Law firm Slater & Gordon said on Friday it was investigating Nufarm's actions since the company delivered profit guidance on March 2. The investigation followed approaches by Nufarm shareholders shortly after the company halved its profit guidance in July.
Blaming poor weather and low demand, Nufarm on July 14 forecast net operating profit between A$55 million and A$65 million, down from guidance issued in March of an operating result between A$110 million and A$130 million.
On the economic front, Australia's services sector remained in a state of contraction in August, although the rate of contraction slowed according to survey results released Friday by the Australian Industry Group and Commonwealth Bank of Australia. The Performance of Services Index compiled by AIG/Commonwealth rose by 0.9 points in August to 47.5.
The survey showed activity in the accommodation/ cafés/restaurants sector was flat in August while retail trade contracted. Activity expanded in communications services. Sales of services increased across the sector, adding 7.4 points to a reading of 51.8.
In the currency market, the Australian dollar opened higher on positive U.S. economic reports. In early trades, the Aussie was quoting at US$0.9108-US$0.9112, up 0.4% from Thursday's close of US$0.9072-US$0.9075. The Australian dollar is currently trading at 0.9104 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Japan, New Zealand, Singapore, South Korea and Taiwan are trading higher, while Malaysia is down with a modest loss. Markets across the region saw strong gains on Thursday.
On Wall Street, stocks ended notably higher on Thursday ahead of Friday's landmark jobs report, following the release of upbeat data on pending home sales and weekly jobless claims.
The major averages all saw steady upside in the second half of the day, eventually ending near their best levels of the session. The Dow gained 50.6 points or 0.5% to end at 10,320.1, the Nasdaq advanced by 23.2 points or 1.1% to 2,200 and the S&P 500 ended up 9.8 points or 0.9% at 1,090.1.
Major European markets ended little changed on Thursday. The French CAC 40 index and the U.K.'s FTSE 100 index edged up by 0.2% and 0.1% respectively, while the German DAX index closed nearly flat.
Crude oil prices moved higher on Thursday on reports of an explosion in an offshore oil rig in the Gulf of Mexico. Light, sweet crude for October delivery settled up US$1.11 at US$75.02 a barrel on the New York Mercantile Exchange, recovering from an intraday low of US$73.11.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.