SYDNEY: Australian shares closed higher for a third straight session on Monday, led by gains in financials and mining stocks, while a handful of upbeat earnings also helped boost investor sentiment.
The S&P/ASX 200 benchmark index ended up 0.1% at 7,665.1 points, its highest in two weeks.
Heavyweight financials rose 0.7% to a near nine-year high, with the “big four” banks rising between 0.3% and 2.7%. Westpac Banking Corp, the country’s second-largest mortgage provider, rose 2.7%, its highest since October 2021, after the company said it sees scope for domestic monetary policy to become less restrictive within the next year along with its quarterly results.
Miners followed suit to add 0.6% on the back of strong commodity prices that rose on expectations of strong demand from top consumer China. Heavyweights BHP Group and Rio Tinto gained 0.9% and 1.6%, respectively.
In the United States, the market pushed back on Federal Reserve rate cut bets after the country’s January inflation data came in stronger than expected.
The data is “an unwelcome surprise” where persistent increase in services firms’ prices would have policy implications, according to analysts at ANZ.
Back in Australia, market participants keenly await the Reserve Bank of Australia’s February meeting minutes and the wage price index, both due on Tuesday, after the central bank signalled it was open to hiking rates further to reign inflation.
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