Australian shares rose on Friday, buoyed by miners and tech stocks as US data suggested a cooling inflationary environment, while local investors remained cautious after the appointment of a new governor to the Reserve Bank of Australia.
The S&P/ASX 200 index rose 0.5% to 7,281.8 points by 0033 GMT, its highest since July 4.
Michele Bullock was appointed as the head of RBA, becoming its first female governor as the central bank undertakes a sweeping reorganisation and after a public backlash over steeply rising interest rates.
Australian Treasurer Jim Chalmers and Prime Minister Anthony Albanese said RBA’s current head Philip Lowe would not be reappointed and would leave the bank after finishing his current seven-year term on Sept. 17.
Meanwhile, data showed US producer prices barely rose in June on Thursday, providing more evidence that inflation is subsiding in the country.
The producer prices report and Wednesday’s CPI report have helped to support the view the Federal Reserve will stop hiking rates after an expected 25-basis-points rate increase later this month.
Mining stocks rose 1.3%, their highest level since June 21, as iron prices strengthened.
Shares are on track for their fourth session of gains.
Commodity stocks push Australian stocks higher after US inflation data
Australia’s top trading partner China reported strong June iron ore imports and positive credit data on Thursday, sending iron ore prices higher.
Shares of heavyweight mining companies BHP Ltd and Rio Tinto jumped 1.9% and 1.6%, respectively.
Technology stocks followed suit, climbing 1.7% tracking overnight gains in their Wall Street peers.
Financial stocks advanced 0.5%, with the so-called “big four” banks gaining between 0.1% and 0.7%.
Among individual stocks, shares of Imugene Ltd rose 2.5% to become one of the top gainers in the benchmark index. Markets in New Zealand were closed for a public holiday.
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