Australian shares edged higher on Monday, as gains in banks and miners outweighed losses in gold and real estate stocks, while Rio Tinto confirmed a takeover approach for US-based Arcadium Lithium.
The S&P/ASX 200 index gained 0.2% to 8,162.1 by 0000 GMT, after losing 0.8% in the previous week.
The Aussie dollar was 0.15% weaker against the US dollar to A$0.68.
Investors awaited minutes of the Reserve Bank of Australia’s last policy meeting, to be released on Tuesday, for more insights into the central bank’s interest rate outlook.
The central bank kept its cash rate steady at a 12-year high of 4.35% last month while maintaining a hawkish stance.
In Sydney, mining stocks rose as much as 1% after copper prices surged last week.
Shares of Rio Tinto were down 0.6% after the miner said it had made an approach to buy Arcadium Lithium, which could be valued at $4 billion to $6 billion or higher.
Arcadium’s Australia-listed shares rose as much as 50.5%. Financials climbed 0.6%, with the “Big Four” banks up between 0.4% and 1.1%.
Financials push Australian shares higher; CBA hits record high
Meanwhile, interest rate-sensitive real estate stocks declined 1.5%, with Goodman Group and Charter Hall Group falling 1.4% and 2.1%, respectively.
Gold stocks dropped as much as 2.1% after bullion prices slipped on Friday.
On Friday, the US Dow Jones Industrial Average rose 0.81% after a surprisingly strong US labour market report.
The S&P 500 gained 0.90%, while the Nasdaq climbed 1.22%.
In New Zealand, the benchmark S&P/NZX 50 index edged 0.2% lower to 12,593.56, with investors awaiting the central bank policy decision on Wednesday.
The Reserve Bank of New Zealand is expected to cut its key interest rate by 50 basis points to 4.75%, according to a Reuters poll.
The central bank lowered rates in August for the first time in more than four years.
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