On Thursday, Australia’s benchmark stock index closed in negative territory, dragged down by investor anxiety triggered by two key macroeconomic factors: stronger-than-forecast domestic employment data and deepening instability in China’s struggling housing sector. Even a dramatic, market-leading rebound in the battered technology sector was not enough to offset losses across financial and mining industries.
The ASX 200 shed 23.70 points, or 0.26 percent, to settle at 8955, while the wider All Ordinaries index slipped 0.08 percent to 9173.60. In currency markets, the Australian dollar strengthened against the U.S. dollar, rising to 71.80 U.S. cents. Of the 11 tracked market sectors, six finished the trading day in positive territory, but gains were far outstripped by declines in heavyweight industries.
Leading the day’s gains, the technology sector jumped 7.40 percent, marking a sharp recovery from recent downturns. Standout performers included logistics software firm WiseTech Global, which surged 12.36 percent to close at $44.90, cloud accounting platform Xero, which climbed 9 percent to $81.86, and lifestyle technology company Life360, which rose 12.45 percent to $21.31.
However, solid upward momentum in tech was completely offset by steep sell-offs among Australia’s big four banks and major mining conglomerates. Commonwealth Bank of Australia, the country’s largest listed company, dropped 2.77 percent to $178.11. Westpac fell 1.65 percent to $40.02, National Australia Bank declined 2.49 percent to $43.41, and ANZ slipped 1.28 percent to $37.73.
IG market analyst Tony Sycamore explained that bank investors reacted negatively to the stronger-than-expected jobs report, which showed the Australian economy added nearly 18,000 new positions in the latest period. The resilient labor market has reinforced expectations that the Reserve Bank of Australia will continue its fight against inflation with additional interest rate hikes. Currently, markets are pricing in an 18-basis-point rate increase at the RBA’s next policy meeting in less than three weeks. A third rate hike this year would push the cash rate even higher, further reducing consumer and business credit demand and creating a major headwind for bank profitability. The RBA already raised rates by a cumulative 50 basis points in February and March, bringing the current cash rate to 4.10 percent.
Beyond banking, the mining sector also dragged the overall index lower, pressured by new data showing the ongoing slowdown in China’s housing market, a key driver of global commodity demand. BHP Group shares slipped 0.34 percent to $55.92, Rio Tinto fell 0.7 percent to $172.60, and building materials manufacturer James Hardie Industries plummeted 4.27 percent to $28. Only Fortescue Metals Group bucked the trend, climbing 1.01 percent to $20.98.
While China’s full-year economic growth of 5 percent beat market forecasts, the housing sector continues to show deep weakness. New home prices in China fell 3.4 percent year-over-year in March 2026, marking the 33rd consecutive monthly contraction and the sharpest decline since May 2025. This persistent downturn underscores the ongoing challenges Chinese authorities face in stabilizing the crucial property sector.
In individual company news, Viva Energy requested a trading halt for its shares following an outburst of fire at its Geelong refinery facility. On a positive note, financial services firm AMP saw its shares rise 3.58 percent to $1.44 after releasing an upbeat trading update that showed platform growth accelerated 45 percent to $1.1 billion. The company also announced a $150 million share buyback program to return capital to shareholders. Wealth management firm Netwealth also enjoyed gains, with shares climbing 5.88 percent to $25.22 after reporting that funds under administration rose to $125.8 billion.