Australian shares inched higher on Monday, set for their third straight session of gains, buoyed by heavyweight miners that offset losses across banks, healthcare, and real estate firms, while New Zealand’s a2 Milk soared 17% on an outlook upgrade.
The S&P/ASX 200 index was trading 0.2% higher at 7,673.40 points, as at 0029 GMT. The benchmark ended 0.7% higher on Friday.
The mining sub-index rose 2%, its biggest intraday percentage gain since Jan. 24, with BHP Group, Rio Tinto and Fortescue up between 1.3% and 1.8%. The banking index recouped early losses to climb 0.3%.
Commonwealth Bank of Australia edged 0.1% higher, while National Australia Bank fell 0.6%.
Shares of Westpac Banking Corp flitted between positive and negative territory after the country’s no. 2 mortgage provider reported a drop in its first-quarter net profit and a decline in core net interest margin.
Meanwhile, expectations for a Federal Reserve interest rate cut were pushed back further after US producer prices rose more than expected.
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Market now expects a 77% chance of a rate cut in June, compared with 92.2% chance a week ago, according to CME’s FedWatch Tool.
Elsewhere, Australian diversified investor Seven Group Holdings made an offer on Monday to take full control of Boral, valuing the remaining nearly 28% stake it does not already own in the building materials maker at A$1.9 billion ($1.24 billion).
Bucking the trend, information technology and health stocks were down 0.3% and 0.9%, respectively.
In New Zealand, the benchmark S&P/NZX 50 index fell 0.2% to 11,698.21.
Shares of a2 Milk Co posted their biggest intraday percentage gain since mid-November 2019 after the dairy producer raised its full-year revenue outlook and reported higher first-half profit.
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