Australian shares ended slightly higher on Thursday, extending their winning streak to six sessions, on the back of gains in technology and real estate stocks.
The S&P/ASX 200 benchmark index closed 0.2% higher at 8,145.6 points. The benchmark rose 0.7% on Wednesday.
On Wednesday, data showed that the first-quarter core inflation slowed to a three-year low, taking the annual pace back into the Reserve Bank of Australia’s 2% to 3% target band for the first time since late 2021, setting up the central bank to cut interest rates on May 20.
“Rate cuts are normally positive for home prices as it boosts how much buyers can borrow and hence pay for a property,” Shane Oliver, chief economist at AMP wrote.
Real-estate stocks ended 1.6% higher at an over two-month high with a 3.4% rise in data centre landlord Goodman Group.
Local tech stocks rose 4% with DigiCo, NEXTDC and Data#3 climbing between 4.6% and 6.3%.
Banks propel Aussie shares to nearly 2-month high; local inflation data on tap
The data centre-focused stocks, among top performers on the benchmark, rose after Microsoft and Meta forecast strong growth and increased spending in the sector.
Australian consumer staples added 1.4%, with the country’s top retailer Woolworths rising 1.2% after it posted a 3% jump in third-quarter sales, beating analysts’ estimates of a largely flat number.
Limiting gains, commodity sectors mining, energy and gold stocks shed between 1% and 1.4%.
Oil prices staged a mild recovery while prices of the precious metal continued their decline.
Meanwhile, banks ended flat with gains in top lender Commonwealth Bank of Australia offsetting losses in Westpac, National Australia Bank and ANZ .
New Zealand’s benchmark S&P/NZX 50 index rose 2.1% to 12,148.6 points.
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