Australian shares pared some early gains on Wednesday after monthly inflation report showed that consumer prices rose above forecast in April, while New Zealand shares extended their fall as the country’s central bank cut its cash rate.
The S&P/ASX 200 index was up 0.2% at 8420.5, as of 0239 GMT.
It ended 0.5% higher on Tuesday. Earlier in the session, the benchmark rose as much 0.5%, touching its strongest level since February 19.
Australian shares end little changed as miners fall offsets broader gain
The April consumer price index (CPI) data revealed that consumer prices rose 2.4% in April compared with a year ago, eclipsing a market estimate of 2.3%.
The trimmed mean measure of core inflation increased by an annual rate of 2.8% in April from 2.7% in March.
A rate cut from the central bank’s next meeting in July is now priced at a 67% probability, with a total of 80 basis points in easing expected by early next year.
Financials gave up early gains to fall 0.1%, with three of the country’s four largest banks trading in the red.
Miners lost 0.3% with sector giant BHP Group shedding 0.5%.
Local oil stocks advanced 1.7% on the back of higher oil prices. Sector heavyweights Woodside and Santos rose about 1.2% each.
Tracking overseas counterparts, technology stocks advanced 1.8% to a more than three-month high, and were set for a fourth consecutive session of gains, if the momentum sustained.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index extended its losses, down 1.8% at 12355.19, after the Reserve Bank of New Zealand, in a widely expected move, cut its rate by 25 bps, while flagging chances for further cuts in the future.
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