Australian shares inch higher as traders brace for GDP data

Australian shares rose slightly on Wednesday as investors awaited third-quarter gross domestic product data that could shape the trajectory of the central bank’s monetary policy.

The S&P/ASX 200 index rose 0.2% to 8,592 by 2325 GMT, with most sectors logging modest gains.

It closed 0.2% higher on Tuesday.

The economic output report, due at 0030 GMT, comes a day after data showed that Australian government spending jumped in the September quarter, signalling strong economic performance that accelerated inflation during the period, closing the door on further rate cuts.

“After last week’s higher-than-expected inflation data, a weaker reading on overall growth could spark fears of stagflation, and potentially weigh on share prices,” said Jimmy Tran, dealing manager at trading platform Moomoo.

The country’s top central banker said on Wednesday that the economy was likely already at its potential growth limit, adding that the output gap had probably closed.

Market swaps imply that the Reserve Bank of Australia will likely keep cash rates on hold through much of next year, with a near split possibility of a hike in December 2026.

Financials were little changed, with three out of the “big four” banks trading in negative territory, while ANZ Group advanced 0.9%.

Rate-sensitive real estate stocks rose 1%, with Goodman Group, Australia’s largest property developer, advancing 1.2%.

Consumer discretionary stocks, which are cyclical in nature, rose 0.7%, with electronics retailer JB Hi-Fi gaining 0.2%.

Gold miners lost 0.6%, tracking a decline in bullion prices.

Index constituent Northern Star Resources fell 0.5%. Among individual stocks, Predictive Discovery rose as much as 27.2% to hit its highest in more than a decade, after the gold explorer received a superior takeover proposal from Perseus Mining. Further south, New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 13,479.92.