Australia shares edge up as banks, healthcare gains overshadow mining losses

Australian shares rose slightly on Thursday, as gains in banking and healthcare stocks countered a decline in miners, a day after mixed inflation data left the central bank’s monetary policy path uncertain.

The S&P/ASX 200 index edged up 0.1% to 8,707.50 by 0012 GMT.

The benchmark rose 0.2% on Wednesday. Data released on Wednesday showed that consumer prices rose 3.4% in November from a year earlier, slower than October’s alarmingly high 3.8%, but a key measure of core inflation increased to 3.2% for the year, staying stubbornly above the Reserve Bank of Australia’s target band of 2% to 3%.

The RBA has already warned it could raise its cash rate if inflation doesn’t cool sufficiently, and markets imply a 31% chance that the central would hike by a quarter point at its meeting on February 3.

All eyes will be now on the quarterly inflation data, due later this month, which will likely carry more weight in the RBA’s upcoming policy decision.

On the bourse, financial stocks rose 0.3% after three consecutive sessions of losses. The “Big Four” banks gained between 0.2% and 1.1%.

Healthcare stocks climbed 1.5%, while technology stocks added 1.6%, tracking strength in the tech-heavy Nasdaq as investors returned to artificial intelligence-related stocks.

Energy stocks added 0.6% despite an overnight fall in oil prices, while consumer discretionary stocks rose 0.3%.

Meanwhile, miners slipped 0.3% after notching record closing highs for three straight sessions, as copper prices fell sharply from an all-time high and nickel tumbled from a 19-month peak. Heavyweights Rio Tinto and BHP Group fell 0.4% each.

A 0.8% fall in gold stocks also weighed on the sector after bullion prices lost ground on profit-taking and a stronger dollar.

New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 13,690.85 points.