Australian shares rose on Wednesday, helped by mining stocks due to a rise in commodity prices, while favourable interest rate cut expectations from the Reserve Bank of Australia provided a boost to real estate stocks.
The S&P/ASX 200 index rose 0.4% to 8,577.0 points by 0050 GMT.
Rate sensitive real estate stocks led gains among Australian equities, rising 1%, after taking cues from expectations of a imminent rate cut from the central bank when it meets next week.
Swaps indicate a 95.1% chance of a quarter-point cash rate reduction at the central bank’s monetary policy meeting next week.
Lower borrowing costs would put more money into consumers’ hands, boosting property demand.
Financial stocks were largely unchanged, likely taking a breather after a stellar run so far this year.
Top bank Commonwealth Bank of Australia and Westpac rose 0.3% each, while National Australia Bank gained 1%.
Markets are now awaiting the retail sales data for May due later in the day after a dip in April raised concerns about consumer spending.
Investors also await US economic data this week, to gauge the outlook of interest rate cuts from the Federal Reserve.
In Sydney, mining stocks rose 0.9% after strong manufacturing data from China, Australia’s top trading partner, boosted copper prices to a three-month high on Tuesday.
Shares of BHP Group and Rio Tinto rose 1.2% and 0.6%, respectively.
Higher oil prices boosted energy stocks, which rose 0.3%. Sector majors Woodside Energy and Santos rose 0.3% each.
Shares of Australian pizza chain operator Domino’s Pizza Enterprises fell as much as 19% to become one of the top losers in the benchmark index after the firm said its group CEO Mark van Dyck would be stepping down.
Airline operator Qantas shares fell 3.7% after it confirmed a cyber incident at one of its contact centres impacting customer data.
New Zealand’s benchmark S&P/NZX 50 index rose 0.4% to 12,789.55.
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