Australian shares rose on Thursday to trade near a 20-month high scaled in the previous session, as expectations grew that key global central banks such as the Federal Reserve will start to cut interest rates early next year.
The S&P/ASX 200 index climbed 0.5% to 7,596.3 by 0018 GMT, helped by gains in financials and commodity stocks.
The benchmark index rose as much as 1.2% on Wednesday to hit its highest level since April 2022 before closing 0.8% higher.
Heavyweight miners led gains for a third consecutive session, rising 1% on the back of strong base metals and iron ore prices. Mining behemoths BHP Group, Rio Tinto and Fortescue advanced between 0.6% and 0.9%.
Gold stocks rose 1.2% after bullion prices scaled a three-week high overnight on expectations of US interest rate cuts next year. Northern Star Resources, Australia’s top gold miner, and Evolution Mining gained 1.1% each.
Australian shares hit 20-month high on Wall Street rally
Energy stocks rose 0.2%, with Woodside Energy up 0.4%, while Santos traded flat.
Rate-sensitive financials advanced 0.5%, with the “Big Four” banks gaining between 0.1% and 0.5%. Technology stocks climbed 0.4%, while the healthcare sector gained 0.1%.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.4% to 11,720.3.
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