Australian shares rose more than 1% on Tuesday after a four-session slide, with heavyweight mining and financial stocks leading the recovery, while investors awaited November retail sales data due later in the day for further direction.
The S&P/ASX 200 index advanced 1.1% to 7,531.50 by 2331 GMT and was set for its best session since Dec. 14 if current gains held.
Investors in Australia will be closely monitoring the November retail sales report for more clarity on the interest outlook after retail sales unexpectedly slipped in October.
A stronger retail sales report will increase the case for the Reserve Bank of Australia to continue with its rate-hike cycle.
“November’s nominal retail sales figures will continue to highlight a weak underlying picture, masked by elevated inflation and rapid population growth,” analysts at Westpac wrote in a note.
Market participants are also awaiting November inflation data due on Wednesday to find more clues to the monetary policy trajectory in the country.
Globally, US inflation data due later in the week is on investors’ radar to gauge when the Federal Reserve will start cutting interest rates this year.
Global stock indexes rose overnight with gains in US tech-related shares driving a more than 2% jump in the Nasdaq. In Sydney, heavyweight financials climbed 0.8%, with the “big four” banks up between 0.7% and 1.2%.
Australia shares end at 3-week low as investors await inflation data
Mining stocks jumped 1.2% and were on track for their best session since Dec. 27, 2023. BHP Group and Rio Tinto gained 1.1% and 0.8%, respectively.
Gold stocks rose 0.7%, with Northern Star Resources up 0.9%. Technology stocks rose more than 2%, tracking their Wall Street peers.
The sub-index was headed for its best session since Dec. 14. In New Zealand, the benchmark S&P/NZX 50 index advanced 0.5% to 11,789.60.
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