Australian shares rose more than 1% on Thursday led by heavyweight financial and mining stocks, after the US Federal Reserve kept interest rates unchanged as widely expected but left the room open for further increase in borrowing costs.
The S&P/ASX 200 index climbed 1.1% to 6915.20 by 1132 GMT, heading for its best day since Sept. 15.
The Fed left interest rates unchanged at its current range of 5.25%-5.50% on Wednesday as widely expected.
Market participants are anticipating the Fed’s rate-hiking campaign may be finished.
However, data pointing to a stronger-than-expected economy and labour market have kept the prospect of another hike on the table.
In Sydney, interest-rate sensitive financial stocks surged 1.8% on Thursday and were on track for their best day since Jan. 4.
The “big four” banks rose between 1.8% and 2.1%.
Australian shares gain on boost from energy, banking stocks
Meanwhile, investors are awaiting the Reserve Bank of Australia’s (RBA) rate decision on Nov. 7, amid recent strong economic data, and strong inflation adding to the case for a rate hike.
Investors are pricing in a near-70% chance that RBA will raise rates by a quarter point to 4.35%, when it meets on Nov. 7.
Heavyweight mining stocks jumped 0.8% to hit their highest level since Oct. 19. Shares of BHP Group, Rio Tinto and Fortescue gained between 0.9% and 1.3%.
Technology stocks climbed 2.1% hitting their highest level since Oct. 26, tracking gains of their Wall Street peers.
Bucking the trend, gold stocks slid 1.3% in their third straight session of declines on weak bullion prices.
Origin Energy received a sweetened takeover bid from a Brookfield consortium, valuing the power producer at A$16.40 billion ($10.49 billion).
Shares were down 1.4%.
The New Zealand benchmark S&P/NZX 50 index rose 0.9% to 10943.87.
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