Australian shares edged higher on Tuesday, led by gains in financial and gold stocks, while grocer Coles and heavyweight miner BHP Group fell after reporting weak annual results.
The S&P/ASX 200 index closed 0.1% higher at 7,121.60 points.
The benchmark fell 0.5% on Monday.
BHP Group reported its lowest annual profit in three years as prices for its key commodities including iron ore fell, and it warned that the lag effects of higher interest rates would impact growth in the developed world in fiscal 2024, sending its shares down 0.7%.
Shares of Australia’s second-largest grocer Coles slumped 7.1% to become one of the top losers in the benchmark index after its annual profit from continuing operations missed analyst forecasts on rising costs.
Globally investors are awaiting further direction on interest rates from the US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium in Wyoming, where he is expected to address the recent rise in treasury yields and strong economic data.
“Jerome Powell likely won’t stray too far from the hawkish tone we heard from the latest Federal Open Market Committee (FOMC) minutes,” Tim Waterer, chief market analyst at KCM Trade said.
“The Fed probably won’t want to under-promise when it comes to interest rate levels just in case the rate of disinflation slows over the coming months.” In Sydney, heavyweight financial stocks advanced 0.4%, with the “big four” banks gaining between 0.2% and 1.3%.
Mining stocks gained 0.2%, with sector majors Rio Tinto and Fortescue jumping 0.5% and 0.4%, respectively.
Gold stocks rose 1.8% to record their best day since Aug. 1.
Technology stocks tracked their Wall Street peers higher, rising 5.2% to log their best day since June 24, 2022. Bucking the trend, energy stocks fell 0.7% on weak oil prices.
New Zealand’s benchmark S&P/NZX 50 index advanced 0.2% to 11,485.26 points.
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