Miners, gold stocks lead Australian shares to three-month high

Australian shares climbed to a three-month high on Tuesday in broad-based gains led by mining and gold stocks, while market participants awaited a key quarterly inflation report due on Wednesday for interest rate clues.

The S&P/ASX 200 index rose 1.2% to 8,962.20 by 0014 GMT, hitting its highest since October 29, as trading resumed after a long weekend.

Markets were closed on Monday for a public holiday.

The fourth-quarter consumer price report is expected to guide the Reserve Bank of Australia’s first policy decision of 2026 in mid-February amid fears of an interest rate hike.

A hotter monthly inflation report and robust monthly jobs data have led markets to price in a 63% chance of an interest rate hike as early as February.

Miners climbed 1.9% and gold stocks rose 1.8%, both hitting record highs on the back of firmer copper and bullion prices.

Global miner BHP jumped 3.1% to reclaim its place as the country’s biggest listed company from top lender Commonwealth Bank, which rose 1.1% on the day and had held the title since early October 2024.

Big banks, which rallied last year on the back of rate cuts, have since been punished by investors for failing to justify their lofty valuations, while miners have climbed due to firm commodity prices. Rate cuts are a double-edged sword for banks, boosting loan demand while squeezing margins.

Financials advanced 1% on the day to a one-week high, with thee of the “Big Four” banks up between 0.8% and 1.3%.

Healthcare and discretionary stocks climbed 0.8% and 1%, respectively. In New Zealand, the benchmark S&P/NZX 50 index advanced 0.3% to 13,495.04 points.