Australian shares rose to a record high on Monday as lithium stocks led index heavyweight miners higher following a report that battery manufacturer CATL had suspended production at a major Chinese mine for at least three months.
The S&P/ASX 200 index was up 0.2% at 8,827.70, as of 0114 GMT, after hitting an all-time high of 8,852.30 earlier in the session.
Investors were waiting for the Reserve Bank of Australia’s monetary policy decision on Tuesday. Markets have priced in a quarter-point interest rate cut, according to a Reuters poll.
Miners climbed 1.5% on Monday in what would be their sixth straight session of gains, with BHP, Rio Tinto and Fortescue rising between 1.3% and 1.7%.
Lithium miners led the rally after a report that Contemporary Amperex Technology (CATL) had suspended production at its lithium mine Jianxiawo in China’s Jiangxi province.
The mine has been a major contributor to rapidly growing supplies of lithium in China, the world’s top processor of the battery material.
Liontown Resources was the top gainer among lithium stocks, rising nearly 25%. Pilbara Minerals, IGO, Core Lithium and Mineral Resources advanced between 10.5% and 17.4%.
Financials rose 0.3% as market participants geared up for the earnings reports of banks. Top lender Commonwealth Bank of Australia is scheduled to announce its full-year results on Wednesday.
All the “big four” banks were up between 0.5% and 1.1% on Monday.
Energy stocks inched 0.3% higher after oil prices steadied on Friday.
Energy giants Woodside and Santos climbed about 0.4% each.
New Zealand’s benchmark S&P/NZX 50 index rose 0.6%.
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