Australian shares climbed for a third straight session on Tuesday, led by banks and miners and tracking US peers higher, while investors girded for local inflation data due on Wednesday.
The S&P/ASX 200 index rose 0.3% to 8,249.2 at close. Overnight, the S&P 500 and the Nasdaq rose about 0.2% each.
“Australian investors woke up this morning to see gains on the three major US indices overnight, which gave the green light for the ASX200 to follow suit,” said Tim Waterer, chief market analyst at KCM Trade.
Technology stocks gained as well, up 0.7%, rising for the third straight day, tracking Wall Street peers.
Heavyweight financials advanced 0.5%, led by the Commonwealth Bank of Australia’s 0.9% rise.
The mining index jumped 0.5% as well, with Rio Tinto leading the gains with a 0.8% rise. Gold stocks rose 1.9%, as bullion prices hovered near a record high supported by uncertainty surrounding the Nov. 5 US elections.
Bucking the trend, energy stocks fell 0.7%, as oil prices remained little changed from lows hit on Monday due to rising Middle East tensions.
The local inflation data due on Wednesday will be keenly watched for cues on the Reserve Bank of Australia’s (RBA) interest rate trajectory.
“Headline CPI is expected to have declined, though it is the trimmed mean figure that the RBA will likely pay most attention to,” Waterer said.
“I think we would have to see a significant downside miss on the CPI numbers on Wednesday in order to bring forward an RBA rate cut by year end.”
Australia’s interest rates have remained at a 12-year high of 4.35% since November 2023 to battle a sticky inflation.
Miners help Australian shares close slightly higher
Additionally, investors are also awaiting the US jobs data due later in the week for further cues on the US rate cuts.
New Zealand’s benchmark S&P/NZX 50 index was up 0.1% to finish the session at 12,783.36 points.
Source: Brecorder
