01.05.202606:27:54UTC+00ASX 200 Dips 0.6% this Week Despite Friday's Rebound

The S&P/ASX 200 advanced 68 points, or 0.8%, to finish at 8,733 on Friday, snapping an eight-session losing streak and rebounding from a three-week low. Bargain hunting on the first trading day of May underpinned broad-based gains across most sectors. Sentiment was further supported by stronger factory activity in China, Australia’s largest trading partner, alongside an upward revision to Australia’s April manufacturing PMI.

U.S. equity futures also firmed after the S&P 500 and Nasdaq notched record closes on Thursday, buoyed by robust first-quarter earnings and easing geopolitical tensions in the Middle East.

Mining heavyweights led the rally, with BHP Group climbing 2.3%, Rio Tinto gaining 2.9%, and Fortescue adding 1.5%. In contrast, the major banks underperformed: the big four slipped, with ANZ falling 2.7% after it lifted its coverage ratio by 4 bps to reflect rising geopolitical risks.

On a weekly basis, however, the index declined 0.6%, marking a third consecutive week of losses as lingering inflation pressures fueled expectations of a possible 25 bps rate hike by the Reserve Bank next week.