Australian shares climb as commodities lift gold, oil stocks ahead of key inflation data

Australian shares advanced on Wednesday, buoyed by gains in gold and oil stocks on firmer commodity prices, while investors awaited a critical inflation report expected to guide the central bank’s next monetary policy decision.

The S&P/ASX 200 index rose 0.4% to 8,976.40 by 2335 GMT and is set for its fourth consecutive session of gains.

The benchmark advanced 0.9% to hit a three-month high on Tuesday.

A robust jobs report last week has sharpened expectations of an early interest-rate hike, placing added weight on consumer price data, due later in the day, to gauge the Reserve Bank of Australia’s (RBA) policy path.

Markets are focused on the December-quarter trimmed-mean inflation, expected to rise 0.8%, which would lift the annual rate to 3.3%, above the RBA’s 2%-3% target band.

An increase of 0.7% or less would temper the odds of a rate hike at the RBA’s February 3 meeting, while a 0.9% or higher print would sharply swing the chances toward tightening, leaving a 0.8% increase to go down to the wire.

Traders are pricing in a near 60% chance of a quarter-point rise to the cash rate next week, with positions set to shift on the inflation print.

Energy firms leapt 1.4% to hit their highest since September 3 after oil futures surged.

Woodside Energy rose 1.8% after the oil giant’s $3.04 billion quarterly revenue topped Visible Alpha’s $2.84 billion estimate.

Gold stocks rose 1% after the bullion jumped to a record peak. Sub-index heavyweight Northern Star Resources climbed as much as 2.5%.

Miners jumped 1.3% to a second straight session of record high.

Mining giants BHP, Rio Tinto and Fortescue rose between 0.4% and 1.5%.

Financials edged up 0.2%, with top lender Commonwealth Bank of Australia advancing 0.4%.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index inched down 0.1% to 13,499.23.