14.05.202606:39:25UTC+00ASX 200 Finishes Slightly Higher After Recent Losses

Australia’s S&P/ASX 200 edged higher to close at 8,641 on Thursday, breaking a four-session losing streak as gains in consumer durables, process industries, and industrial services supported sentiment. Risk appetite improved after President Donald Trump, speaking at a summit in Beijing with Xi Jinping, said U.S.–China relations would become “better than ever before,” with discussions scheduled through Friday on trade, tariffs, Taiwan, and Iran.

On the domestic front, attention shifted to the 2026/27 federal budget. Analysts at Commonwealth Bank highlighted sizeable savings alongside significant new spending but judged that the fiscal package was unlikely to alter the Reserve Bank’s near-term policy stance or materially alleviate inflationary pressures.

Three of the big four banks advanced, while BHP rose 1.1%, Macquarie added 2.8%, and Insurance Australia Group gained 3.3%. In contrast, Lynas Rare Earths tumbled 10.4% as investors unwound the geopolitical premium in critical minerals amid signs of renewed diplomatic engagement between the United States and China.