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% to 8,398.2, its highest level since February 20, by 0029 GMT.
The index was on track to log its eighth consecutive session of gains.
The benchmark is up 1.8% 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%, since China is Australia’s largest trading partner.
The sub-index is on track to record its sixth straight weekly gain.
Miners BHP Group, Rio Tinto and Fortescue added 0.8%, 0.9% and 0.9%, respectively. Gold stocks advanced by 3.7%. However, the sub-index lost 10.4% this week.
Gold miners Northern Star Resources and Genesis Minerals were up 3.6% and 4.9%, respectively.
Australia shares close higher as banks, consumer stocks rise
Evolution Mining rose 4.9% and was among the top gainers on the benchmark index.
Financials rose 1%, with National Australia Bank, Westpac, ANZ and Commonwealth Bank of Australia rising between 1% and 1.9%.
New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to 12,834.33.
Globally, Japan’s Nikkei was down 0.1% on Friday, while overnight the US S&P 500 ended 0.41% higher and the Nasdaq closed down 0.18%.
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