Australian shares advanced on Tuesday, as heavyweight financials climbed to a record high, even as investors remained cautious ahead of domestic and US consumer price data due this week.
The S&P/ASX 200 index was up 0.8% at 7,791.7 points, as of 0020 GMT.
The benchmark index closed 0.8% lower on Monday. Australia’s inflation data for May, due on Wednesday, will be closely monitored by investors after the country’s central bank adopted a hawkish hold on interest rates in its last policy meeting, and also reiterated the risk to hiking interest rates if inflation woes persist.
The US personal consumption expenditures (PCE) price index - the Federal Reserve’s favoured gauge of inflation - due on Friday also remains on investors’ radar.
Investors are hoping to get more clues on the US Fed’s next steps on interest rates as it attempts to fight inflation without hurting the economy too much.
In Sydney, rate-sensitive financial stocks climbed 1% to hit a record high with the ‘big four’ banks gaining between 0.6% and 1.2%.
The sub-index is up 13.1% this year, as of last close. Following suit, energy stocks gained 1.5% after oil prices rose on expectations of improved fuel demand.
Shares of Woodside Energy rose up to 2% to hit their highest level in more than a week while Santos gained 1.6%.
Australian shares edge lower as commodity stocks drag; inflation data in focus
Heavyweight mining stocks gained 0.6%, with shares of top miners BHP Group and Rio Tinto up 0.6% and 1.2%, respectively.
The mining sub-index, however, has lost more than 14% so far this year due to prolonged iron ore demand concerns from top consumer China as the country battles an uneven economic recovery and a struggling property sector.
New Zealand’s benchmark S&P/NZX 50 index retreated 0.2% to 11,610.15 points.
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