Markets live updates: ASX briefly hits new record high, pressure eases on Japanese yen
by business reporter David Chau
Topic:Financial Markets
Posted Wed 5 Aug 2026 at 7:59am
Wed 5 Aug 2026 at 7:59am
, updated Wed 5 Aug 2026 at 12:09pm
Wed 5 Aug 2026 at 12:09pm
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SpaceX’s results beat analyst estimates, but the firm is yet to turn a profit.
Meanwhile, the Australian share market started its day higher on hopes the US and Iran will reach a deal to reopen the Strait of Hormuz. Pressure has also eased on the Japanese yen after more intervention
See how the trading day unfolds on our blog
Disclaimer: this blog is not intended as investment advice
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Wed 5 Aug 2026 at 11:47am
Wed 5 Aug 2026 at 11:47am
Market snapshot
By Gareth Hutchens
- ASX 200: +0.12% to 9,156 points (live data below)
- Australian dollar: -0.04% at 70.42 US cents
- Wall Street: S&P 500 (+1.8%), Dow (+1.7%), Nasdaq Composite (+2.6%)
- Europe: FTSE (+0.2%), Stoxx 600 (+0.7%)
- Asia: KOSPI (+4.4%), Nikkei (+1%)
- Spot gold: +0.4% to $US4,092/ounce
- Oil (Brent crude): +0.42% at $US79.78/barrel
- Iron ore: -0.15% at $US93.4/tonne
- Bitcoin: -0.2% to $US64,187
Prices current at 11:45am AEST:
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Wed 5 Aug 2026 at 12:21pm
Wed 5 Aug 2026 at 12:21pm
Australia dwelling prices broadening price declines
By Gareth Hutchens
Matthew Hassan, head of macro-forecasting at Westpac, says Cotality’s home value index – which covers all of Australia – fell 0.7% in July, following downwardly-revised 0.7% and 0.5% declines in June and May respectively and a 0.1% dip in April
Prices have now declined 1.6% nationally from their March peak. Annual growth has slowed to 5.3%/yr
The 1.5%qtr quarterly decline is the most significant since the 2022 price correction
Mr Hassan says the detail shows a broadening and deepening price correctionwhich is running at a similar pace to previous months in Sydney and Melbourne but swung sharply from solid gains to declines in Brisbane and Perth
Across the fifty detailed sub-markets covered, just under 70% recorded price declines over the three months to July, compared to 16% in the three months to March
He says the correction reflects a combination of interest rate hikes in February, March and May, uncertainty around the Middle East conflict and housing‑related tax policy changes announced in the Federal budget in May
Wed 5 Aug 2026 at 11:29am
Wed 5 Aug 2026 at 11:29am
Japan can’t ‘defy economic gravity’ after yen intervention, says Bush’s former Treasury Secretary
By David Chau
Former US Treasury Secretary Timothy Geithner, who oversaw US participation in a G7 joint yen sale after a devastating 2011 earthquake, told CNBC that currency intervention could help
“But it only really works if it’s a bridge to policy or if it’s working with the underlying direction of policy over time,” he said
Mr Geithner, who served during Barack Obama’s first presidential term, said financial markets anticipated that Japan would need to follow through with an interest rate hike
“That’ll help reinforce the objectives of this intervention in some sense,” he added
“And if intervention is coordinated by the major powers, it could be more effective. So there’s a chance this would be effective.”
‘Defying gravity’ … economically
Henry Paulson, who served as Treasury Secretary under George W Bush during the global financial crisis of 2008, said on the same CNBC program that it would be difficult for Japan “to defy economic gravity”
He said Japan’s high debt levels and a perceived need for higher interest rates were at odds with Prime Minister Sanae Takaichi’s expansionary policies
But Mr Paulson said it was important that the US support a partner like Japan
He said: “It’s in our interest and in their interest. We don’t need them selling [US] Treasuries right now.”
If the Japan were to sell its holdings of US Treasury bonds more aggressively, without coordination from the United States government, it could lead to a spike in US bond yields — and much higher borrowing costs for American consumers
Japan, meanwhile, was under pressure to sell US dollars to buy more yen because it was trying to avert a worsening cost of living situation for its citizens
As Japan buys much of its food and oil from overseas, a weak yen makes those purchases more expensive. Hence, the need to prop up its value
But economists say currency interventions are usually short-term “band aid” solutions that don’t fix the underlying economic issues in the long-term
with Reuters
Wed 5 Aug 2026 at 11:16am
Wed 5 Aug 2026 at 11:16am
The US will do ‘whatever it takes’ to prop up the Japanese yen, says Treasury Secretary Scott Bessent
By David Chau
US Treasury Secretary Scott Bessent has implied the US may be open to intervening further to support Japan’s efforts to stabilise the yen
The Japanese currency was at a 40-year low against the greenback in recent weeks
“We will do whatever it takes to support them in a way that helps the American economy, the American taxpayer,” Mr Bessent said in an interview on CNBC
He made those remarks two days after confirming the US Treasury had joined Japan’s finance authorities in an intervention on Friday to prop up the yen
Mr Bessent said the yen’s substantial undervaluation could trigger other economic problems or competitive devaluations of other currencies, “which is unhealthy”
The US funded its purchase of yen by selling some of its euro holdings
The Treasury Secretary said he had reassured European partners including central banks that the US move was “just a reallocation of our re
“Seems to me the euro is much closer to an equilibrium price,” he said
“I’m not going to talk about where the euro should or should not trade, but it’s really the substantial undervaluation of the yen here and the policies that the [Sane] Takaichi government is putting in place to change that.”
with Reuters
Key Event
Wed 5 Aug 2026 at 11:02am
Wed 5 Aug 2026 at 11:02am
European markets climb to new record, Aussie dollar falls sharply against yen since US and Japan’s currency intervention
By David Chau
Before I sign off and hand over the blog to my esteemed colleague Gareth Hutchens, here’s a quick look at what else is happening on markets
Locally, the ASX 200climbed to a new record high for a very short period of time this morning, before wiping out most of those gains
And it wasn’t just the Dow Jonesand S&P 500 which hit new peaks. Europe’s Stoxx 600 index also rose to its highest level ever overnight, rising 0.7% to 657 points
In today’s Asian session, Japan’s Nikkeihas jumped 3%, while South Korea’s KOSPIhas risen sharply by 3.8%
On currency markets, the Australian dollaris currently buying 110.9 Japanese yen
Last week, it was trading much higher, above 114 yen!
So the joint intervention between from the United States and Japan had a major impact on the yen’s value — with the US selling some of its euro holdings to buy yen, and the Japanese government selling US dollars to buy more yen
Key Event
Wed 5 Aug 2026 at 10:50am
Wed 5 Aug 2026 at 10:50am
ASX briefly hits record high, then erases nearly all its gains
By David Chau
I should also point out that the Australian share market briefly hit a new record high a short time ago
Within the first 10 minutes of trade, the ASX 200 climbed as high as 9,213 points
But first, here’s a brief recap:
- The last time we saw an intra-day highlike that was back in late February (at 9,203 points).
- But the record closing high happened on March 2, when the market closed at 9,201 points.
But since that brief flirtation with a new record in early trade, the ASX has some of its momentum. So it was probably too soon!
Right now, it’s up 0.1% to 9,155 points. So it’s practically flat, meaning the enthusiasm has completely evaporated!
Wed 5 Aug 2026 at 10:39am
Wed 5 Aug 2026 at 10:39am
Hopes of Middle East de-escalation lead to sell-off across ASX oil and gas stocks
By David Chau
At the other end of the spectrum, the worst performing sectors are energy (-1.6%), utilities (-1%) and consumer staples (-0.7%)
Oil and gas stocks like Woodside Energy (-2.8%), Karoon Energy (-2.2%), Santos (-1.6%) and Beach Energy (-1.1%) are seeing the heaviest losses this morning
Their share price movements are linked with the oil price
Brent crude fell more than 5% overnight after officials from the United States and Qatar made upbeat claims about the US-Iran making progress towards de-escalation and that the Strait of Hormuz could reopen by “tomorrow”
Keep in mind — those claims have been made many times in the past and have often led to disappointment or hostilities resuming soon afterwards
Key Event
Wed 5 Aug 2026 at 10:30am
Wed 5 Aug 2026 at 10:30am
Surge across mining and critical minerals stocks driving ASX higher
By David Chau
About half the sectors on the Australian market are trading higher, with materials (+1.9%), consumer discretionary (+0.8%) and healthcare (+0.7%) in the lead
In comparison, the ASX 200 index is up 0.6% to 9,196 points
Many of today’s best performing stocks are companies specialising in :
- critical minerals: IperionX, Lynas Rare Earths, Iluka Resources, Elvra Lithium, Capstone Copper
- technology: Life360 and WiseTech Globalw
It seems the ‘energy transition’ trade is in vogue this morning
Wed 5 Aug 2026 at 10:18am
Wed 5 Aug 2026 at 10:18am
Market snapshot
By David Chau
- ASX 200: +0.6% to 9,197 points (live data below)
- Australian dollar: steady at 70.45 US cents
- Wall Street: S&P 500 (+1.8%), Dow (+1.7%), Nasdaq Composite (+2.6%)
- Europe: FTSE (+0.2%), Stoxx 600 (+0.7%)
- Asia: KOSPI (+4.4%), Nikkei (+1%)
- Spot gold: -0.1% to $US4,072/ounce
- Oil (Brent crude): -0.8% at $US78.73/barrel
- Iron ore: -0.1% at $US93.55/tonne
- Bitcoin: -0.5% to $US63,989
Prices current at 10:18am AEST
Key Event
Wed 5 Aug 2026 at 10:16am
Wed 5 Aug 2026 at 10:16am
ASX records higher-than-expected gain in opening trade
By David Chau
The Australian share market has started its day with larger-than-expected gains
The ASX 200 was up 0.6 % to 9,202 points by around 10:15am AEST
We’ll have more updates for you shortly on what’s driving the market higher
Key Event
Wed 5 Aug 2026 at 9:55am
Wed 5 Aug 2026 at 9:55am
SpaceX’s space revenue jumps, Elon Musk dismisses reports of plans to sell Tesla’s China business
By David Chau
Starship, SpaceX’s next-generation reusable rocket system, is yet to enter commercial service but is expected to enable deployment of higher-bandwidth Starlink satellites and orbital AI-computing infrastructure
Space revenue grew 29% year over year
The company’s ability to turn Starship into a reliably reusable vehicle is central to its longer-term strategy
Investors have closely watched for updates on testing progress, launch cadence, reusability milestones and the vehicle’s satellite-deployment capabilities
Separately, SpaceX said it had partnered with Nvidia to use its chips in the Starmind AI1 orbital compute satellites
The space segment, which includes commercial launches, government missions and development of Starship, remains a significant
While launch activity for Falcon — SpaceX’s partially reusable workhorse rocket — has remained robust, revenue can vary with the mix of internal Starlink deployments, commercial customer missions and government contracts
In recent years, SpaceX has increasingly prioritised launches for its own satellite network over third-party payloads, while continuing to absorb significant costs tied to Starship’s development
‘Fake news’
Investors will also be keen to hear CEO Elon Musk’s comments on a scheduled conference call about a potential merger between SpaceX and Tesla
This was after the Wall Street Journal reported last week that executives at his electric-vehicle company had been told to prepare for a separation of its China business ahead of a potential deal
Musk dismissed the report as “fake news”, but he had previously declined to rule out the possibility, citing growing overlap between the companies
with Reuters
Key Event
Wed 5 Aug 2026 at 9:47am
Wed 5 Aug 2026 at 9:47am
Oil prices drop to three-week low on claims of progress in US-Iran de-escalation
By David Chau
Oil prices fell more than 5% and settled at a three-week low on after comments by Qatari and US officials raised hopes for a diplomatic resolution to the Iran war
Brent crude futures fell 5.3% to $US79.36 a barrel, its lowest since July 13
US West Texas Intermediate futures dropped 5.7% to $US75.77 a barrel, also a three-week low
Here’s what various officials said overnight:
- US Secretary of State Marco Rubiosaid there was progress in talks with Iran and Oman about moving more ships through the Strait of Hormuz, but a final agreement was yet to be reached.
- US Treasury Secretary Scott Bessentsaid a deal with Iran to reopen the strait could come as soon as Tuesday or Wednesday (local time).
- Qatar’s foreign ministry spokesperson Majed al-Ansarisaid efforts to secure a diplomatic resolution to the war were continuing.
- The Emir of Qatar’s officesaid the Emir (the country’s monarch) and US President Donald Trump have discussed ways to reduce escalation and converge viewpoints between the United States and Iran.
Meanwhile, the latest round of US-facilitated talks between Israel and Lebanon began on Tuesday (local time) and will continue through Thursday, a US State Department spokesperson said
The prospect of a diplomatic solution to the conflict has helped remove some of the geopolitical risk premium in oil prices after the US started bombing Iran again last month, said Simon-Peter Massabni, head of business development at brokerage XS.com
“If negotiations between the United States and Iran make meaningful progress, the market could continue pricing in a lower probability of supply disruptions, further reducing the geopolitical risk premium embedded in crude prices,” he said
with Reuters
Key Event
Wed 5 Aug 2026 at 9:31am
Wed 5 Aug 2026 at 9:31am
ASX on track to rise again, Wall Street boosted by strong earnings from AI-linked companies
By David Chau
The ASX will start trading in just under half an hour, and is expected to start its day about 0.5% higher
This will be the fourth day in a row that the Australian market has risen
It comes after a strong session on US markets, which saw the Dow Jones and S&P 500 climb to new record highs
Apart from hopes for de-escalation in the Middle East, and US Treasury Secretary Scott Bessent’s comments that the Strait of Hormuz could reopen by “tomorrow”, the rally on Wall Street was also driven by strong earnings from AI-related companies
Palantir Technologies soared 29.5% and recorded its biggest daily percentage gain since February 2024, after raising its annual revenue forecast
Caterpillar, which is seen as a bellwether for the global industrial economy, jumped 5.6% after raising its annual revenue growth forecast, as the buildout of AI data centers has fuelled demand for its power-generation and construction equipment
Investors have been closely monitoring results from AI-linked companies this earnings season for any signs the massive spending in the space will be justified
Chip stocks, also seen as beneficiaries of AI-spending, surged, with the Philadelphia Semiconductor index jumping 6.6%, and rebounding for a fourth straight session — after it tumbled 20.6% last month
Results from corporate earnings this quarter have mostly been strong
Of the 304 companies in the S&P 500 that have reported second-quarter earnings as of Friday, 85.2% have beaten estimates, versus the long-term average of 67.5%
with Reuters
Key Event
Wed 5 Aug 2026 at 9:20am
Wed 5 Aug 2026 at 9:20am
Questions over AI-linked job losses and offshoring as Qantas confirms it is looking to accelerate the use of AI
By David Chau
Qantas is investigating ways to accelerate its use of AI and is reportedly looking to offshore up to 1,000 jobs to India
The airline is in early stage discussions with consulting giant Accenture but says “no formal agreement is in place and no decisions have been made”
We invited Professor Greg Bamber, co-author of Up in the Air, onto The Business program last night. His book examines the airlines’ relationships with their staff
He told host Kirsten Aiken why Qantas was likely to experience a major backlash if it went ahead with those offshoring plans. You can listen to his insights here:
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Key Event
Wed 5 Aug 2026 at 9:10am
Wed 5 Aug 2026 at 9:10am
Which ASX-listed companies are reporting their results in the next few weeks?
By Stephanie Chalmers
We’re in the very early days of ASX company profit reporting season, so plenty of fodder for this very blog in coming weeks
Here’s a handy calendar you can search to find out when a company you may own shares in, or just have a fascination with, is reporting, with dates compiled by CommSec:
You can read more on what analysts are expecting from your blog master this morning, David Chau
Warning — it’s not overly reassuring
Or if you prefer, you can watch his three-minute summary for the highlights:
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Key Event
Wed 5 Aug 2026 at 9:00am
Wed 5 Aug 2026 at 9:00am
SpaceX ramped up its spending on AI by more than 2,000pc in one year
By David Chau
SpaceX’s AI business, which includes xAI, Grok, social media platform X, and a rapidly expanding data centre operation, has been its biggest area of investment
The AI division is generating revenue from compute contracts with Anthropic, Alphabet’s Google and Reflection AI, though a portion of its recurring revenue has yet to be recognised
SpaceX sharply increased capital spending on AI, pouring in $US15.83 billion in the second quarter ended June 30, up from $US749 million a year earlier
That’s a 2,013% increase in spending in just one year
In addition, the company’s satellite-internet unit has continued to expand its global subscriber base, aided by launches of additional satellites and a growing range of consumer, enterprise, a
But average revenue per subscriber slumped 22% from a year earlier as SpaceX entered more international markets and rolled out lower-priced plans even as subscribers doubled to 12 million
with Reuters
Key Event
Wed 5 Aug 2026 at 8:41am
Wed 5 Aug 2026 at 8:41am
More volatility ahead as SpaceX early investors will soon be able to sell their shares
By David Chau
Despite its strong earnings result, shares of SpaceX are still down 8% since its record-breaking initial public offering in June, which valued the company at about $US1.75 trillion
The stock could face additional pressure from the expiry of SpaceX’s post-IPO lock-up period starting on Thursday (local time)
That’s when insiders and early investors will be allowed to sell some of their SpaceX stake, which could unleash even more shares and volatility on the market
Starlink and SpaceX’s broader connectivity operations remain the company’s primary financial engine, underpinning CEO Elon Musk’s push to build an AI-first business that extends beyond renting compute capacity to developing frontier models, consumer and enterprise software, and, eventually, data centers in space
But critics have argued that the strategy of using Starlink’s profits to bankroll the AI business and Starship launch operations until they can stand on their own is unsustainable
“That’s a tremendous upside surprise today alone, the fact that AI is already monetising itself,” said Brian Mulberry, chief market strategist at Zacks Investment Management
“They’re not relying on Starlink to fund operations there. I think that’s a huge part of the story.”
Reuters
Wed 5 Aug 2026 at 8:35am
Wed 5 Aug 2026 at 8:35am
Markets recap: Alan Kohler’s finance report
By David Chau
The Australian share market is at its highest level in five months, and is set to rise further in a couple of hours
If you need a refresher before the ASX opens for trading, I can certainly recommend you watch Alan Kohler’s finance report from last night’s 7pm News bulletin
Among other things, Alan explained why diesel and unleaded petrol prices are surging, despite sharp falls in the price of crude oil
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Key Event
Wed 5 Aug 2026 at 8:19am
Wed 5 Aug 2026 at 8:19am
SpaceX revenue jumps in debut quarterly results
By Stephanie Chalmers
SpaceX has reported that itsquarterly revenue nearly doubledand operating losses narrowed sharply in its first earnings report since going public, buoyed by strong growth in itsStarlink satellite-internet and AI businesses
But the company’s capital expenditures ballooned to more than $US18 billion($25.5b) from $US2.83 billion ($4b) a year earlier, and SpaceX finance bossBret Johnsen said he expected capital spending would be similar for the next couple of quarters
SpaceX shares fell 7.5% in after-hours trading. The stock rose 9.4% in regular trade on Wall Street on Tuesday (US time) ahead of the publication of its results
The company, led byElonMusk, reported April-June revenue of $US7.8 billion ($11.1b), compared with $US4.1 billion ($5.8b) a year earlier, beating expectations
Starlink revenue, which accounted for over half of total revenue, rose 66%, and revenue from SpaceX’s AI business — which Musk has pitched as the company’s future growth driver — surged about 250%
“We’re building AI compute capacity at scale faster than anyone else, we believe, and we’re significantly improving our AI models,” Musk said ion a post-earnings call
AI operating losses narrowed, as did total operating losses, to $US143 million from $US970 million
Operating income at its Starlink division surged 79%
Reuters
Key Event
Wed 5 Aug 2026 at 8:15am
Wed 5 Aug 2026 at 8:15am
Billion-dollar property collapse highlights private credit danger
By David Chau
Liquidators will attempt to unravel the mystery behind a former hospitality baron’s incredible rise and spectacular fall later this week when they begin examinations in the Federal Court
Jon Adgemis somehow managed to accrue $1.8 billion in debt — over a hotel portfolio that cost less than $300 million to assemble
It’s expected the role of private credit, or non-bank lenders, will be cast into the spotlight, and highlight growing risks facing the economy
Our chief business correspondent Ian Verrender joined The Business to explain those risks
He says private credit is highly unregulated “and that’s the problem because we don’t know where the problems are”
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