AUSTRALIAN shares climbed on Wednesday, reaching their highest levels in more than three months, supported by strength in banking and mining stocks ahead of the release of April inflation data later in the day.
The S&P/ASX 200 index was up 0.5 per cent at 8,448.5 points, as of 0040 GMT, its strongest level since Feb 19. The benchmark index was on track for a fourth consecutive day of gains, if current trends persisted.
Markets are anticipating the monthly inflation rate to ease marginally in April, reinforcing bets on further monetary policy easing from the Reserve Bank of Australia, which delivered a 25-basis-point cut last week.
A rate cut from the central bank’s next meeting in July is now priced at a 67 per cent probability, with a total of 80 basis points in easing expected by early next year.
Financials rose 0.4 per cent to their highest levels in more than three months, with three of the country’s four largest banks gaining between 0.1 per cent and 0.6 per cent.
Miners climbed 0.4 per cent despite a slump in iron ore prices with discussions about a steel production cut in top consumer China.
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Shares of Australian mining giants BHP, Rio Tinto and Fortescue added nearly 1 per cent, 0.1 per cent and 1.7 per cent, respectively.
Local oil stocks advanced 1.3 per cent, defying softer oil prices amid ongoing supply concerns. Sector heavyweights Woodside and Santos rose about 0.9 per cent each.
Gold stocks recovered from early declines to gain 0.3 per cent, even as the appeal of safe-haven bullion waned following US President Donald Trump’s decision to delay tariffs and provide a temporary reprieve.
Northern Star Resources dived 1.2 per cent, while shares of Evolution Mining climbed 0.5 per cent.
Tracking overseas counterparts, tech stocks advanced 1.3 per cent to their highest levels in more than three months, and were set for a fourth consecutive session of gains, if the momentum sustained.
New Zealand’s benchmark S&P/NZX 50 index fell 1.3 per cent to 12,423.59 points.
Later in the day, the Reserve Bank of New Zealand is due to announce its monetary policy stance, with economists in a Reuters poll pointing towards a quarter-point cut. REUTERS
