Australian Stocks Rebound Modestly Amidst Inflation Concerns

Australian stocks started the week on a modestly positive note as the market reversed losses from the prior session.

The benchmark index added 23 points, or 0.3%, to reach 9,083 in early trading on Monday.

Gains were driven by sectors such as materials, consumer services, and healthcare, which lifted sentiment among investors.

A positive lead from Wall Street on Friday supported risk appetite, with traders looking ahead to Fed Chair Warsh's remarks at the Jackson Hole symposium later this week amidst elevated oil prices and multi-decade highs in global bond yields.

However, gains were limited by caution ahead of Australia's July inflation report due on Wednesday, after headline inflation eased to 3.8% in June from 4.0%, but remained above the Reserve Bank of Australia's 2%-3% target range.

Governor Michele Bullock has recently stressed that underlying inflation remains too high and warned that further rate increases cannot be ruled out, amid volatility linked to the Middle East conflict.