AUSTRALIAN shares jumped to an over two-month high on Friday, led by gains in banks and miners, ahead of the Reserve Bank of Australia’s (RBA) policy decision next week, where the central bank is widely expected to cut interest rates.
The S&P/ASX 200 index rose as much as 1.2 per cent to 8,398.2, its highest level since Feb 20, by 0029 GMT. The index was on track to log its eighth consecutive session of gains.
The benchmark is up 1.8 per cent for the week, its best weekly performance since April 28.
The RBA is expected to cut interest rates by 25 basis points on Tuesday, its second in over four years, and deliver two more cuts this year, a Reuters poll showed.
Meanwhile, iron ore prices have been on a winning streak this week, thanks to a trade truce between China and the US that lifted hopes of stronger demand.
On the local bourse, miners climbed 1.7 per cent, since China is Australia’s largest trading partner.
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The sub-index is on track to record its sixth straight weekly gain.
Miners BHP Group, Rio Tinto and Fortescue added 0.8 per cent, 0.9 per cent and 0.9 per cent, respectively.
Gold stocks advanced by 3.7 per cent. However, the sub-index lost 10.4 per cent this week.
Gold miners Northern Star Resources and Genesis Minerals were up 3.6 per cent and 4.9 per cent, respectively.
Evolution Mining rose 4.9 per cent and was among the top gainers on the benchmark index.
Financials rose 1 per cent, with National Australia Bank, Westpac, ANZ and Commonwealth Bank of Australia rising between 1 per cent and 1.9 per cent.
New Zealand’s benchmark S&P/NZX 50 index fell 0.4 per cent to 12,834.33.
Globally, Japan’s Nikkei was down 0.1 per cent on Friday, while overnight the US S&P 500 ended 0.41 per cent higher and the Nasdaq closed down 0.18 per cent. REUTERS
