Australian shares rose on Monday led by energy stocks, as strong US jobs report failed to dampen predictions that interest rates would decline in 2024, while investors awaited local employment data due later in the week.
The S&P/ASX 200 index was up 0.2% at 7,212.0, as of 2330 GMT.
The benchmark closed 0.3% higher on Friday. US wage and labor market data showed that the economy is expanding modestly thanks to rising worker compensation and a rise in labor supply, furthering hopes of rate-cuts by the Federal Reserve in fiscal 2024.
In Australia, investors await the employment data for November, due Dec. 14, to gain further clarity on the Reserve Bank of Australia’s further actions with rates.
Energy stocks led gains, rising 0.9%, set for their fourth straight day of advances, as oil prices rose on expectation of demand growth.
Growth was further aided by sector giants Woodside Energy and Santos, on Friday, confirming speculation they were in preliminary talks for a possible $52 billion merger.
Woodside rose 1%, while Santos was up 0.6%.
Australian shares retreat from 2-month high as financials weigh
Rate-sensitive financials stocks rose 0.4%, with the big four lenders gaining between 0.2% and 0.8%.
Technology stocks, were up 0.2%, tracking their Friday’s Wall Street peers. Shares of sector major Xero jumped 0.14%.
Bucking the trend, gold stocks fell 1.3%, as gold prices dropped globally. Northern Star Resources were down 1.7%, while Evolution Mining fell 0.3%.
Heavyweight miners followed the downward move, set to snap a three-day rally, falling 0.2%, with sector giant BHP Group losing 0.1%.
Sigma Healthcare said it would merge with privately-owned pharmacy giant Chemist Warehouse Group to create a A$8.8 billion ($5.79 billion) entity. Shares of the company were on a trading halt.
The New Zealand benchmark S&P/NZX 50 index was flat at 11,499.22.
Comments
Comments are closed for this article.