Australian shares ended marginally higher on Tuesday, as real estate and commodity stocks rose while banks declined after a cautious stance by the country’s central bank poured water on prospects of more rate cuts.
The S&P/ASX 200 benchmark index closed 0.1% up at 7,860.40 points, after having risen as much as 0.9% early in the session.
Real estate stocks rose 0.7%, with Goodman Group gaining 1.1%.
“There is likely some positioning occurring in real estate stocks ahead of anticipated lower mortgage rates in the backend of the year,” said Tim Waterer, chief market analyst at KCM Trade Global.
Mining stocks rose 0.3%, as gold miners soared after gold prices hit a record high after investors were driven towards safe-haven assets amid rising global trade tensions and volatility in global markets.
The gains were, however, capped by declines in steel makers and heavyweight iron ore miners after a fall in China’s housing prices in February raised demand concerns.
Banking stocks, which have been trading at high multiples to the benchmark index since last year, ended 0.2% lower after Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter reiterated that the market remained over-optimistic about the prospects for further rate cuts.
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“One of the things we are focused on right now is US policy settings…and how this flows through to activity and inflation here in Australia,” Hunter said.
Market focus is now on the local jobs data, due on Thursday, where any upside surprise could influence the RBA to keep rates steady for longer.
Energy stocks added 0.6%, tracking rising oil prices, while consumer discretionary stocks slipped 0.6%.
New Zealand’s benchmark S&P/NZX 50 index closed down 0.7% at 12,076.85.
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