Australian shares moved closer to a record high on Friday, boosted by technology and financial stocks ahead of an expected interest rate cut by the local central bank next week, though losses in commodity stocks capped gains.
The S&P/ASX 200 index rose 0.2% to 8,611.50 points by 0047 GMT, just 27.6 points shy of the record high hit on June 11.
The benchmark has gained more than 1% so far this week and is headed for its best week since mid-May.
The Reserve Bank of Australia (RBA) is expected to cut rates on Tuesday, a Reuters poll of economists showed. Markets and economists had earlier forecast three RBA rate cuts this year but raised their projections to four in May and now to five, as inflation eased faster than expected and the growth outlook weakened.
While lower borrowing costs typically pressure bank margins, they could support the broader economy by spurring growth and potentially drive up both loan demand and volumes.
Financials rose 0.4%, recovering from a more than 1% drop on Thursday.
National Australia Bank and Westpac rose 0.2% and 0.4%, respectively. Rate-sensitive real estate stocks climbed as much as 1% to a three-week high.
Scentre Group and Goodman Group gained more than 1% each. Technology stocks added 1.4%, taking cues from the S&P 500 and Nasdaq, which notched record closes overnight.
Shares of Xero advanced 0.9%. Bucking the trend, heavyweight miners lost 1.3% after rising more than 3% on Thursday.
BHP Group and Rio Tinto shed 2% and 2.3%, respectively.
Gold stocks eased 0.2% after bullion prices declined 1% overnight.
Oil stocks followed suit, dropping 0.2%.
New Zealand’s benchmark S&P/NZX 50 index added 0.5% to 12,770.55 points.
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