Australian shares extended gains on Wednesday, hitting a near two-month high, with financials at the helm of gains, as investors awaited the local inflation data for cues on the domestic central bank’s interest rate trajectory.
The S&P/ASX 200 index gained 0.3%, rising for a fifth straight session, to 8,094.8 points, the highest since March 6, by 0052 GMT.
The benchmark had climbed 0.9% on Tuesday.
The keenly-awaited first-quarter inflation data, due later in the day, is estimated to show the key measure of core inflation, the trimmed mean, rising 0.6% to drag the annual pace down to 2.8% from 3.2%.
This would make a case for the Reserve Bank of Australia (RBA) to cut its interest rate at its next meeting on May 19.
As of April 29, 62% of the market participants surveyed expect the RBA to cut rates to 3.60% from the current 4.10% cash rate, according to the RBA rate tracker.
Rate-sensitive financials led the gains, adding 0.5% and rising for the tenth straight session.
The “Big Four” banks ascended between 0.3% and 0.8%.
Technology stocks advanced 0.8%, tracking Wall Street’s overnight gains.
On the other hand, energy stocks dipped 0.4%, following a slide in oil prices as US President Donald Trump’s erratic tariffs raised concerns about weakening global economic growth and fuel demand.
Banks, miners boost Australian shares higher; Fortescue shines
Origin Energy, Australia’s second-largest power producer, fell 2.3% after reporting a 10% sequential drop in revenue in the third quarter from its stake in the Australia Pacific LNG project (APLNG).
Among individual stocks, Coles Group, the country’s second-largest grocer, gained as much as 0.8% after posting a 3.4% rise in third-quarter revenue.
New Zealand’s benchmark S&P/NZX 50 index was largely flat at 12,025.3 points.
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