Australian shares rose on Wednesday, boosted by mining and energy stocks, but investors remained cautious ahead of US inflation data which will determine the Federal Reserve’s path on its rate hiking cycle.
The S&P/ASX 200 index advanced 0.6% to 7,155.50 points at 1228 GMT in their second session of gains. The benchmark rose 1.5% on Tuesday.
The US consumer price data due later on Wednesday will provide clues on whether price pressures have cooled in the country and if the Federal Reserve is close to the end of its rate hiking cycle.
Investors digested recent comments from Federal Reserve officials who said the level of inflation warranted additional rate hikes, but the central bank is nearing the end of its monetary policy tightening cycle.
Meanwhile, investors are awaiting the interest rate decision by the Reserve Bank of New Zealand (RBNZ), which is likely to keep it unchanged at 5.50%, according to a Reuters poll.
New Zealand’s benchmark S&P/NZX 50 index retreated 0.1% to 11,898.43 points in their third session of losses. Back in Sydney, mining stocks gained 1.3% in their second session of gains, with sector-major BHP Ltd rising 1.4%.
Shares of Rio Tinto advanced 1.1% after the company said it would build a hydrogen plant in Gladstone, Queensland along with Japan’s Sumitomo Corporation.
Australian shares end higher led by rally in commodity stocks
Energy stocks jumped 2.2% in their best session since June 16, tracking a surge in oil prices.
Shares of Woodside Energy and Santos climbed 1.9% and 1.4%, respectively. Heavyweight financial stocks climbed 0.4%, with the so-called “big four” banks jumping between 0.4% and 0.7%.
Technology stocks gained 0.1%, tracking their Wall Street peers higher.
Gold stocks traded in the negative territory.
Shares of Megaport extended previous session’s gains to add 9.5%, while also topping ASX 200 charts after the company upgraded its EBITDA guidance for FY23 and FY24.
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