Banks and miners lift Aussie shares to near one-month high; Rio Tinto rises on strong output
- The S&P/ASX 200 index rose 0.7% to 8,868.30 points
Australian shares climbed to a near one-month high on Wednesday, buoyed by banks and miners after softer-than-expected US inflation data and strong overseas bank earnings, while Rio Tinto rose on beating quarterly iron ore sales estimates.
The S&P/ASX 200 index rose 0.7% to 8,868.30 points as of 0008 GMT, its highest since June 19, after the benchmark struggled for direction on the first two days of the week.
US inflation came in lower than expected, while big banks in the country posted strong results, shifting the focus away from persistent tensions between Washington and Tehran.
Back in Australia, the mining giant Rio Tinto beat Visible Alpha estimates, posting a 7% increase in second-quarter iron ore sales, helped by strong operational performance.
Shares of the iron ore miner climbed 1.5% to a one-week high.
Miners climbed 2.2% to their highest since July 7, as iron ore prices rose after an escalation in the Strait of Hormuz lifted freight costs, and confirmation of a strike at BHP’s Port Hedland operations added to supply concerns.
BHP led the gains with a 3.7% jump, set for its best day in more than two months.
The world’s largest listed miner is scheduled to announce its quarterly production results on Thursday.
Gold stocks advanced as much as 1.1%, tracking bullion prices.
Northern Star Resources and Vault Minerals added 1.8% and 1.2%, respectively.
Heavyweight financials rose 0.6%, with the “Big Four” banks advancing between 0.5% and 0.7%.
Macquarie climbed 1.4% to its all-time high.
Technology stocks shadowed Wall Street peers’ overnight gains, advancing 1.1%. WiseTech Global and NEXTDC rose 0.4% and 3.4%, respectively.
Capping gains, energy slid 0.3%, set for their worst session since July 7, with Santos and Whitehaven Coal inching 0.1% and 0.3% lower, respectively.
Consumer staples and healthcare stocks slipped more than 0.6% in early trade. Meanwhile, New Zealand’s benchmark S&P/NZX 50 index edged up 0.1% at 13,666.68.
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