Australian shares rose on Friday led by heavyweight mining stocks, but the market was set for its worst month in a year, as growing worries over the world economy lingered amid prospects of central banks keeping interest rates higher for longer.
The S&P/ASX 200 index rose 0.4% to 7,051.0 by 0045 GMT, but was set to lose nearly 3.5% for the month, its worst since September last year.
The benchmark was also on track for its first quarterly decline in four. Hawkish rhetoric from the US Federal Reserve and the prospects of higher-for-longer interest rates globally have dented sentiment towards riskier assets in recent times.
However, modest rise in Australian retail sales and an in-line consumer price index for August, have lessened pressure on the central bank to hike rates next month.
According to a Reuters poll, the Reserve Bank of Australia will likely hold its key rate steady at 4.10% next week but hike it to a peak of 4.35% next quarter.
Mining stocks led the gains, rising 1.5%, aided by an uptick in iron ore prices on positive metal output data.
The sub-index was, however, set for its second consecutive monthly decline. BHP Group and Rio Tinto rose 1.4% and 0.9%, respectively.
Gold stocks rose 1.4%, and technology stocks gained 0.3%. Core Lithium rose over 22% and topped gains in the benchmark index, after posting maiden annual profit of A$10.8 million.
Miner and gold stocks drag Australian shares lower
Bucking the trend, energy stocks declined 0.1% as oil prices fell. New Zealand’s benchmark S&P/NZX 50 index rose 0.4% to 11,229.73, but was set for its biggest quarterly decline since June-quarter last year.
The Reserve Bank of New Zealand will hold its key rate steady next week and at least until end-March, as it waits to see the full impact of previous hikes, according to a Reuters poll.
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