Australian shares inched higher on Friday, helped by gains in miners and financials, as signals of a measured interest rate approach from US Federal Reserve officials and prospects of an economic recovery in China lifted investor sentiment.
The S&P/ASX 200 index advanced 0.3% to 7,272.1 by 0040 GMT. The benchmark ended 0.1% higher on Thursday.
Commenting on his preferred path of interest rate hikes in the United States, Atlanta Fed President Raphael Bostic said he favoured a “slow and steady” approach with quarter-point increases for now as the appropriate course of action, giving investors hopes for a slowdown in rate hikes.
Meanwhile, China’s manufacturing activity grew at the fastest pace in more than a decade in February, data released on Wednesday showed, indicating that the economy is on a path to recovery after it lifted strict COVID restrictions in December.
Market sentiment was also boosted by the lifting of production curbs in key Chinese steelmaking hubs Handan and Tangshan.
Investors in Australia are now awaiting a Reserve Bank of Australia policy meeting scheduled next week, where the central bank is expected to increase rates again by 25 basis points to 3.60%, according to a Reuters poll.
Mining stocks advanced 0.4%, hitting their highest in three weeks and extending gains for a fourth session. Sector heavyweights BHP Group and Rio Tinto gained 0.7% and 1.4%, respectively.
Financial stocks climbed 0.2%, with all the “big four” banks posting gains.
Australian shares inch up as China data lifts spirit; focus shifts to central bank
Commonwealth Bank of Australia rose 0.4%.
Technology stocks tracked their Wall Street peers higher, climbing 0.6%.
Block Inc’s ASX-listed shares and Xero Ltd jumped 4.1% and 0.4%, respectively. New Zealand’s benchmark S&P/NZX 50 index retreated 0.6% to 11,831.02.
Comments
Comments are closed.