Australian shares erase early gains to close lower

Australian shares gave up early advances to close lower on Thursday, as investors booked profits after encouraging cues from U.S.-China trade talks fuelled two sessions of record gains.
The S&P/ASX 200 index ended 0.3% lower at 8,565.1 points after rising as much as 0.3% early in the session. The benchmark closed at record highs in the previous two sessions.
Markets globally were closely monitoring the U.S.-China trade talks this week, which resulted in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students access to U.S. universities.
However, the United States saying it was readying a partial evacuation of its Iraqi embassy due to heightened security risks in the region proved a dampener for risk appetite.
Back in Sydney, heavyweight financial stocks ended 0.5% lower, dragged down by the 'Big Four' banks, which fell between 0.2% and 0.8%.
Australia's big lenders, often seen as the backbone of the economy, have seen a robust rally recently on expectations of lower near-term rates.
Australian shares hit record peak as US-China revive trade truce
Banking stocks, which have been beneficiaries from the last two rate cuts and the one expected in July, are naturally likelier candidates for any retracement or profit taking, said Junvum Kim, Asia Pacific senior sales trader at Saxo Markets.
Energy stocks ended flat. The sub-index rose as much as 2.3% to hit its highest level since March 4 in early trade, following a jump in oil prices on escalating U.S.-Iran tensions.
Gold stocks climbed 2.6%, limiting overall losses, as bullion prices firmed on escalating geopolitical tensions and a weaker dollar, while softer U.S. inflation data boosted expectations of Federal Reserve rate cuts.
New Zealand's benchmark S&P/NZX 50 index rose 0.3% to finish the session at 12,649.1.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Express Tribune

an hour ago

• Express Tribune

Pak-China dialogue: Soft power vital to counter disinfo, says Mushahid

Listen to article Leaders, diplomats, parliamentarians, students and scholars gathered at the Pakistan-China Dialogue hosted by Pakistan-China Institute (PCI) under 'Friends of Silk Road' auspices, focused on 'Strengthening Mutual Understanding Between Pakistan and China and Building a Community with a Shared Future for Neighbouring Countries.' Speakers celebrated the enduring 'Iron Brothers' partnership, championed a multipolar order based on the UN Charter, and highlighted President Xi Jinping's Belt and Road Initiative (BRI) as a catalyst for peace, prosperity and regional connectivity. The Dialogue was organised by Pakistan-China Institute together with a visiting high-level 5-man delegation from the Communist Party of China's International Department (IDCPC) led by IDCPC Spokesperson & Chief of Information, Ambassador Hu Zhaoming. Mustafa Hyder Sayed, PCI Executive Director and Dialogue Moderator, opened the proceedings by noting that the historic Silk Road friendship between Pakistan and China has never been transactional or tactical; rather, it is rooted in shared history, trust and a common commitment to uplift the wider neighborhood.' He framed the Dialogue as part of PCI's broader effort to amplify voices from Asia and the Global South, given the changing global scenario. Pointing to escalating Cold War rhetoric, he condemned the newly created US Congress's 'Countering PRC Influence Fund, 'which authorizes US$325 million per year from 2023 to 2027 to counter the malign influence of the Chinese Communist Party and the Government of the People's Republic of China, worldwide. Mustafa called the measure 'a Cold-War-era throwback that diverts resources from development and dialogue, precisely the opposite of what our region needs.' Delivering the Keynote Address, Senator Mushahid Hussain Sayed, Chairman of PCI, observed that the 'global balance of economic and political power is shifting from West to East, heralding the Asian Century.' He lauded China's 'peaceful rise as a source of strength for developing nations across Asia, Africa and Latin America', and thanked Beijing for its unwavering support of Pakistan's territorial integrity and sovereignty, especially last month in the face of Indian aggression. Mushahid termed 'Pakistani talent and Chinese technology an invincible wall for peace, security and stability in South Asia. Condemning recent Israeli strikes on Iranian territory, the Senator called the attacks a flagrant violation of International Law and the UN Charter, and rejected narratives promoting a 'new Cold War or so-called China threat.' 'Security is preserved through cooperation, not military blocs, or demonising countries through disinformation', he stressed. Ambassador Hu Zhaoming, Spokesperson of the International Department of the Communist Party of China (IDCPC), described Pakistan as 'etched in the deepest hearts of the Chinese people,' adding, 'China and Pakistan are like two sides of the same coin—you cannot choose one without the other.' Highlighting the BRI's evolution since 2013, Ambassador Hu noted that over 150 countries now participate in the initiative, which uniquely 'promotes China's inland development while fostering global connectivity.' He urged younger generations to 'carry the torch of friendship forward.' Speaking for the Government of Pakistan, Dr Shezra Mansab Ali Kharal, Minister of State for Climate Change, argued that the current world order is 'visibly fragmenting,' while China consistently advocates multipolarity, non-intervention and equality among states. 'The BRI embodies this vision,' she said, 'fostering a network of interdependent economies that choose dialogue over conflict.' Former Foreign Secretary Ambassador Aizaz Ahmad Chaudhry echoed the call for cooperative paradigms during what he called 'a time of flux where wars erupt and rules collapse. 'President Xi Jinping's philosophy of 'win-win cooperation and mutual respect,' he said, offers 'the most promising foundation for a future world order when the dust settles.' From the legal perspective, Barrister Aqeel Malik, Minister of State for Law and Justice, emphasized that 'security and stability are paramount' for CPEC's success. He championed 'soft-power bridges' such as expanded regional-language media—including Balochi language broadcasts—to deepen people-to-people ties. Malik also proposed Afghanistan's inclusion in CPEC, calling it 'a natural extension of the shared-future vision.' The event was also attended by students and scholars from all the provinces, representing different universities, media, think tanks, as well as representatives of Chinese companies working on CPEC projects. Concrete proposals to jointly promote Pakistan-China 'Soft Power' were discussed, together with some upcoming events and conferences in this regard in China.

Business Recorder

4 hours ago

• Business Recorder

Taxing solar panels to backfire as Pakistan needs time to bolster manufacturing: Experts

Energy experts believe that the imposition of General Sales Tax (GST) on the import of solar panels, regardless of the final tax rate decided by the federal government, will not slow down Pakistan's accelerating transition to renewable energy. Moreover, contrary to the government's assumption that the imposition of GST would promote domestic industry, experts argue that the move would backfire as the local industry remains underdeveloped and is presently unable to meet the market demand. The remarks were made by clean energy experts, industrialists, climate activists, and renewable energy traders during a webinar titled 'Taxing the Sun: Will Solar Still Shine in Pakistan?', jointly organised by Energy Update and Pakistan Solar Association (PSA). During the webinar, participants examined the federal government's recent budgetary proposal to impose GST on solar panels. The government in its federal budget proposed to impose an 18% GST on solar panels imported. This sparked considerable debate; however, after consultations, the government decided to lower the rate to 10%. Waqas Moosa, PSA Chairman, highlighted that the decade from 2020 to 2030 has been globally recognised as a pivotal era for transitioning to clean energy. He indicated that Pakistani consumers would persist in embracing solar energy to power their homes and businesses, regardless of the added cost from GST. Moosa, however, cautioned that Pakistan's local industry is not yet sufficiently developed to meet the growing demand for advanced solar panels in adequate quantity. 'As such, relying solely on local production at this stage could risk stalling progress.' Moosa strongly criticised the proposal to tax imported solar panels, calling it a serious setback to Pakistan's efforts in combating the climate crisis. 'Whether or not a tax is implemented', he said, 'Domestic consumers will continue shifting to solar energy due to persistent power shortages and unaffordable electricity tariffs from the national grid.' Muhammad Zakar Ali, CEO of Inverex Solar Energy, also echoed similar sentiments. He said that the vast majority of electricity users in Pakistan will continue to transition away from grid-supplied electricity, regardless of tax implications. Ali argued that Pakistan needs a minimum of 18-24 months to establish a viable local industry capable of producing clean energy equipment at scale. Imposing a tax prematurely could deter both domestic and international investors, he warned. He further noted that high electricity tariffs for industrial users could discourage investment in solar panel manufacturing plants. Ali, however, remained optimistic that prospective Chinese investors would soon launch joint ventures with Pakistani industrialists to set up such facilities. The Inverex CEO explained that establishing local solar panel manufacturing plants could lead to the development of five supporting vendor industries, significantly boosting the clean energy supply chain in Pakistan. Pakistan's solar surge lifts it into rarefied 25% club Dr Khalid Waleed, Research Associate at the Sustainable Development Policy Institute (SDPI), believed that the surge in rooftop solar installations in urban centres presents an opportunity for Pakistan to earn carbon credits on the global climate finance market. During the webinar, Tanveer Barry, Former Vice President Karachi Chamber of Commerce and Industry (KCCI), pointed out that while Pakistan's installed electricity generation capacity exceeds 45,000 megawatts (MW), only around 27,000 MW are currently deliverable to end-users due to outdated and overburdened transmission infrastructure. Barry also highlighted the immense untapped potential for solar energy adoption among off-grid rural households and agricultural communities across the country.

Business Recorder

6 hours ago

• Business Recorder

China's yuan rises on stronger fixing, weaker dollar outlook

HONG KONG: China's yuan firmed against the US dollar on Friday as the central bank set the daily fixing stronger and as expectations of dollar weakness supported the currency. Prior to the market opening, the People's Bank of China set the midpoint rate at 7.1695 per dollar - its strongest since March 17 and 106 pips firmer than a Reuters' estimate. The PBOC has guided the yuan's daily fixings firmer in recent sessions — a move viewed as an effort to boost confidence in the currency amid an uneven Chinese economy and uncertainty over Sino-US trade talks. Meanwhile, China kept benchmark lending rates unchanged as expected on Friday, after Beijing rolled out sweeping monetary easing measures a month earlier to support the economy. By 0400 GMT, the yuan was 0.08% higher at 7.1811 to the dollar after trading in a range of 7.1756 to 7.1822. Its offshore counterpart traded at 7.1819 yuan per dollar, up about 0.06% in Asian trade. The sluggish dollar performance in June amid concerns over the ballooning US fiscal deficit and the durability of US assets due to the trade war, also helped the yuan. 'Emerging market currencies are marginally stronger versus the dollar month-to-date and have held onto their May gains', Goldman Sachs analysts said in a note. China's yuan hits one-week low on worries over Middle East conflict The bank expects some low yielding Asian currencies, including Chinese yuan, to continue to perform well versus the dollar. The yuan is up 0.3% against the dollar this month, and 1.7% this year. The PBOC governor vowed to promote further yuan internationalisation at the 2025 Lujiazui Forum earlier this week, also lifting sentiment. Separately, the Hong Kong dollar hit 7.85 per US dollar on Friday, touching the weak end of its trading band against the dollar for the first time since May 2023, according to LSEG data.