FX.co ★ ASX 200 Closes 0.4% Lower

The ASX 200 added 34 points, or 0.4%, to close at 8,691 on Monday, advancing for a third straight session. The rally tracked a jump in U.S. stock futures as optimism grew over a potential agreement to reopen the Strait of Hormuz, which supported risk appetite even though President Trump indicated he would not “rush” into any deal. Trump also said he wants Kevin Warsh to independently lead the Federal Reserve following recent turbulence at the U.S. central bank.

Gains on the local market were tempered by investor caution ahead of this week’s release of U.S. PCE inflation data. Domestically, focus is on Australia’s April CPI print due in the coming days, after March inflation climbed to its highest level since September 2023, partly reflecting higher fuel costs. U.S. equity markets are closed today for a holiday, limiting offshore leads.

Most sectors finished higher, with non-energy minerals, process industries, producer manufacturing, and consumer-related stocks among the standout performers. Heavyweight BHP Group rose 0.7%, while notable gains came from Qantas Airways (up 5.7%), Northern Star Resources (up 5.4%), and Evolution Mining (up 4.5%). Three of the four major banks advanced between 0.3% and 0.8%.