Australian shares jumped as much as 1% to touch a more than one-week high on Friday, led by mining and banking stocks, while investors assess economic data and comments from the US Federal Reserve for interest rate cut expectations.
The S&P/ASX 200 index was up 0.5% higher, as of 0051 GMT, at 7,641.30, after rising as much as 1% earlier.
The benchmark was, however, set to end the week 0.1% lower. Investors were pouring money across sectors in Australia after global markets traded in the green following a favourable US retail sales print, which fed hopes of an earlier start to Fed’s rate cuts.
The heavyweight mining sector gained 1.1%, their biggest intraday jump since Feb. 7. Top miners BHP Group, Rio Tinto, Fortescue gained 0.7%, 1.1% and 0.8%, respectively.
Financials added 0.2%, with the “Big Four” banks rising between 0.2% and 0.8%.
Meanwhile, QBE Insurance fell as much as 4.8%, its biggest intraday loss since mid-November, after the insurer forecast weaker-than-expected premium growth and operating ratio for fiscal 2024.
Insurance Australia Group (IAG) also declined up to 5.7%, its biggest drop since early February 2023, after first-half cash earnings doubled but fell short of consensus estimates. General insurer IAG also announced an A$200 million ($130.44 million) share buy-back plan.
Australia shares rise on boost from banking stocks
Energy stocks gained 1.1%, tracking strong oil prices. Woodside Energy and Santos rose 1.6% and 0.9%, respectively. Gold stocks jumped as much as 2.5% to post their biggest intraday gain since February 2 after bullion prices inched higher following softer US economic data.
Northern Star Resources gained 3%.
New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 11,680.59.
The Reserve Bank of New Zealand governor said the central bank’s current 2% mid-point inflation target remained appropriate, as it struck a “right balance between the costs and benefits of inflation”.
Comments
Comments are closed for this article.