Australian shares hit a more than one-week high on Wednesday, supported by the gains in miners as China’s central bank lowered a short-term lending rate, while investors awaited the US Federal Reserve’s interest rate decision.
The S&P/ASX 200 index rose 0.3% to 7161.6 at 0032 GMT, its highest since June 6. The benchmark rose 0.2% on Tuesday.
Data showed that US consumer prices barely rose in May and the annual increase in inflation was the smallest in more than two years, though underlying price pressures remained strong, supporting the view that the Fed would keep rates unchanged in its policy decision later in the day, while adopting a hawkish posture.
On the domestic front, Australian business and consumer surveys showed on Tuesday that storm clouds were gathering for the economy, with a slowdown in business activity accelerating and spending confidence staying near recession levels, amid warnings of more rate hikes to come.
On the local bourse, heavyweight mining index rose 2.1% as market sentiment improved after the central bank of the world’s top steel producer lowered a short-term lending rate for the first time in 10 months. Behemoths BHP Group, Rio Tinto and Fortescue Metals were all trading higher.
Financials rose 0.9%, with all the “big four” banks trading in positive territory.
Australian shares eke out small gains, Fed decision in focus
Energy Stocks also ascended 0.6%, chasing a rise in oil prices.
CSL emerged as the top-loser on the index and skid 8.6%, after the biotech giant’s FY24 guidance missed analyst estimates.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 11,627.44.
New Zealand’s Auckland International Airport (AIA) dropped 3.6% to a near five-month low, after it revised its dividend policy.
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