Australian shares rose on Tuesday, helped by gains in energy and financial stocks, while traders awaited the US central bank’s policy meeting this week for further interest rate clues.
The S&P/ASX 200 index advanced 0.6% to 6,812.7 by 1140 GMT after hitting a more than one-year low on Monday.
The US Federal Reserve is expected to leave policy rates on hold at the end of its two-day meeting starting later in the day.
Market participants will focus on the message from Fed policymakers to gauge the interest rate outlook.
Meanwhile, retail sales in Australia rose at the fastest pace in eight months in September, suggesting resilience in consumer spending which would add to the case for an interest rate hike at the Australian central bank’s policy meeting on Nov. 7.
Investors are also looking out for a survey of purchasing managers in China’s manufacturing segment later in the day to assess the economic recovery of Australia’s top trading partner.
A Reuters poll showed China’s manufacturing activity likely expanded for a second straight month in October.
In Sydney, interest rate-sensitive financials rose 0.8%, with the so-called “big four” banks gaining between 0.5% and 0.7%.
Energy stocks jumped 0.8%, with Woodside Energy and Santos up 0.8% and 0.9%, respectively. Technology stocks tracked their Wall Street peers higher, gaining 0.8%.
Australian shares fall as energy, financial stocks weigh
Shares of Xero Ltd jumped 1.3%. Gold stocks slid 1.5%, with miner Northern Star Resources losing 1.9%.
Among individual stocks, Origin Energy fell 0.6% after superannuation fund AustralianSuper said it plans to vote against a Brookfield-led consortium’s A$15.35 billion ($9.78 billion) takeover offer for the company.
In corporate news, winemaker Treasury Wine Estates agreed to a $900 million buyout of California’s DAOU Vineyards. Trading in its shares was halted.
New Zealand’s benchmark S&P/NZX 50 index advanced 0.3% to 10,769.91.
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