Australian shares rose on Wednesday, helped by strong gains in mining stocks on hopes of fresh fiscal stimulus in China, while market participants awaited local inflation data due later in day for further interest rate clues.
The S&P/ASX 200 index advanced 0.5% to 6,889.0 by 1118 GMT.
The benchmark rose 0.2% on Tuesday.
China, Australia’s top trading partner, is set to approve fresh fiscal stimulus to bolster its economic recovery.
The country’s top parliament approved a bill that will allow local governments to front load part of their 2024 bond quotas and issuance of new sovereign debt, state media reported on Tuesday.
Australian miners jumped 2%, leading gains on the benchmark stock index, after Dalian iron ore futures closed sharply higher on Tuesday.
BHP Group and Rio Tinto rose more than 2% each.
Miners drag Australian shares lower
Meanwhile, investors awaited third-quarter inflation data, which could influence the Australian central bank’s policy decision at its next meeting in November.
Market focus was also on the US third-quarter GDP figures and the US PCE price index on Thursday that could influence the Federal Reserve’s outlook on interest rates.
In Sydney, technology stocks gained 0.3% after their Wall Street peers closed higher overnight. Heavyweight financials edged down 0.1%.
Energy stocks slid 0.1% on weak oil prices, while gold stocks fell 0.3%.
Among individual stocks, Ampol rose up to 6.7% to become the top gainer in the benchmark index after the fuel retailer posted a 65% jump in third-quarter operating earnings.
Woolworths Group, Australia’s biggest supermarket chain, reported a 5.3% rise in first-quarter group sales.
Shares were down as much as 0.8%. New Zealand’s benchmark S&P/NZX 50 index retreated 0.4% to 10,922.13.
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