Franklin FTSE Australia ETF

FLAU

Market cap $94.2M

Australia's consumer prices jumped in the first quarter, hitting the highest level since September 2023, as the impact of the energy shock fed into the data.

Inflation hit it highest level since the fourth quarter of 2023. RBA signaled inflation would stay above its 2%–3% target for longer.

S&P Global Ratings on Thursday lowered its issuer credit rating for the Australian Securities Exchange to "A+/A-1" from "AA-/A-1+", two weeks after a local regulator flagged ​governance and risk management failures at the stock exchange operator.

Australian ETFs like EWA draw focus as energy shocks and RBA rate hikes fuel inflation fears.

The growth data follows a monthly inflation report that showed price pressures continued to build in the Australian economy.

The S&P 500 is off to a dismal start in 2026, lagging most developed-market indexes as investors pull back from U.S. tech stocks with elevated valuations.

Australia's central bank raised its policy rate by 25 basis points to 3.85%. That marked the Reserve Bank of Australia's first rate hike since November 2023.

The Reserve Bank of Australia said future policy decisions will remain dependent on the flow of economic data.

Australia's monthly inflation indicator jumped to its highest level in a year in July, affirming the Reserve Bank of Australia's cautious approach to cutting interest rates over recent months.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.