Australia Macro+: Asia Pacific: 「The Monthly」- More in the Bank

Australian equities recovered modestly in October, with the ASX 200 rising 1.4% on a total-return basis to 8,908.1 after September’s decline. Leadership shifted from Resources to Financials: Banks rebounded while Materials continued to weaken. Large caps outperformed significantly, with the ASX 20 gaining +2.7%, compared with falls of 6.4% for the Small Ordinaries. Breadth also deteriorated, with 52 stocks reaching new 52-week lows versus 17 new highs. AGM updates, guidance revisions, quarterly mining reports and corporate activity drove elevated stock-level dispersion. Renewed inflation concerns and the RBA’s tightening bias remained key macro headwinds. Keeping Score: Financials made the largest contribution at 228bps, including 181bps from Banks. Health Care added 44bps, followed by Consumer Discretionary at 24bps and Industrials at 16bps. Materials detracted 209bps, largely offsetting Financials’ contribution. Utilities (+9.3%), Financials (+7.0%) and Health Care (+6.3%) recorded t