Australian shares notch fresh high, NAB rises over 2%

Australian shares inched higher to a record level on Monday, largely driven by a more than 2% rise in National Australia Bank on strong earnings growth, although losses in energy and mining stocks limited the gains.

The S&P/ASX 200 index rose 0.1% to 8,943.90 by 0051 GMT, after last week’s 1.5% gain.

Investor appetite for risk assets has improved after the central bank’s interest rate cut last week and a largely dovish outlook on monetary policy.

A slew of strong corporate earnings, led by top banks, have aided inflows into equities recently.

Banks rose 0.3%, with National Australia Bank up 2.2% after the country’s top business lender reported a slight increase in third-quarter cash earnings, supported by improved margins and growth in business and home lending. Healthcare stocks advanced 0.7%, with CSL leading the charge with a rise of 0.7%.

Capping the gains on the benchmark index, energy stocks fell 0.8% as oil prices weakened on easing concerns about a disruption in Russian supply. Shares of Woodside Energy and Santos fell 0.3% and 0.9%, respectively.

Miners slipped 0.3% due to softer iron ore prices amid weak property demand and low outdoor construction activity in key steel consumer China.

Rio Tinto and BHP declined 0.8% and 0.3%, respectively.

Market participants are now awaiting earnings of global miner BHP and energy giant Woodside, due on Tuesday.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.2% to 12,920.99.

The Reserve Bank of New Zealand is set to announce its cash rate decision on Wednesday. Markets are expecting a 25-basis point cut to 3%.