Australian shares rose on Thursday, boosted by technology stocks and financials, a day after data showed inflation slowed more than expected in the second quarter, indicating fewer chances of another rate hike in the central bank’s meeting next month.
The S&P/ASX 200 index advanced 0.7% to 7,451.6 points by 0040 GMT, hitting its highest level since Feb. 14.
Data from the Australian Bureau of Statistics on Wednesday showed the consumer price rose 0.8% in the second quarter, the smallest gain since the third quarter of 2021.
Investors are now pricing in a 31% chance of a quarter-point hike by the Reserve Bank of Australia’s upcoming meeting in August.
Australia shares close at over five-month high as Q2 inflation slows
Investor sentiment, however, was dented after the US Federal Reserve hiked its interest rates by an expected 25 basis points while also signalling additional hikes ahead.
Back in Sydney, financial stocks led the gains with a 0.8% jump.
The “Big Four” banks gained between 0.6% and 1.2%.
Technology stocks jumped 1.6% to hit their highest level since July 21.
Shares of Xero Ltd gained 1.6%.
Mining stocks retreated 0.5% with sector majors BHP Group and Rio Tinto falling 0.5% and 1.9%, respectively.
Among individual stocks, shares of Fortescue slid 0.3% despite forecasting higher iron ore shipments for financial year 2024 as the miner ramped up its magnetite operations in Western Australia.
Investment bank Macquarie Group fell 4.4% after it flagged a lower quarterly profit as contributions from its asset management, banking and financial services slumped.
Lithium miner Allkem said its fourth-quarter revenue eased as weak lithium prices offset higher output at its flagship Mt Cattlin project in Western Australia, sending shares down 0.8%.
New Zealand’s benchmark S&P/NZX 50 index advanced 0.2% to 11,979.87 points.
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