Australian shares edged up on Monday as the gains in energy and financial stocks offset declines in miners, while investor sentiment remained positive on bets that the US interest rates had already peaked.
The S&P/ASX 200 index rose 0.1% to 7,055.50 by 0023 GMT.
The benchmark closed around 0.1% lower on Friday. Investors remained buoyant on the hopes that US rates have peaked and might even begin to fall next year.
However, top Federal Reserve officials did not completely rule out the possibility of further hikes if needed.
In Sydney, energy stocks gained 1.5% as oil prices soared driven by expectations of OPEC+ deepening supply cuts to shore up prices.
Sector majors Woodside Energy and Santos gained 0.9% and 1.0%, respectively.
Karoon Energy advanced 5.4%, becoming the top gainer on the benchmark index, with brokarage Morningstar expecting the energy producer’s acquisition of Who Dat and Dome Patrol oil and gas fields in the US to benefit its earnings.
Following suit, the financials also advanced 0.6%, with the “Big Four” banks gaining between 0.4% and 0.8%.
However, gold stocks fell around 1.5% tracking subdued gold prices on Friday. Sector major Northern Star Resources fell as much as 2.6%.
Miners fell 0.5%, with BHP Group and Fortescue slipping between 0.3% and 0.8%. Rio Tinto shares fell 0.7%.
Australian shares fall as wage data lifts inflation concerns
On Friday, the heavyweight miner agreed to pay a $28 million to settle a US Securities and Exchange Commission lawsuit accusing it of fraud while handling of a failed investment in a Mozambique coal project.
Separately, Australian bourse operator ASX Ltd said it entered an agreement with India’s TATA Consultancy Services (TCS) to design and replace its clearing house electronic subregister system (CHESS) software.
ASX shares rose 2.4% to hit a 2-month high.
New Zealand’s benchmark S&P/NZX 50 index fell 0.02%to 11,174.33.
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