Miners, banks lift Australian shares as investors await RBA decision

Australian shares rose on Tuesday, driven by banks and miners, as investors awaited the central bank’s key policy decision due later in the day for further clarity on interest rates.

The S&P/ASX 200 index rose 0.3% to 8,609.50, as of 2337 GMT, set to snap a three-session losing streak.

The benchmark closed 0.4% lower on Monday.

Market participants will focus on the Reserve Bank of Australia’s monetary policy board meeting due later in the day, where it is expected to hike the key cash rate to 4.1%.

Rising inflation expectations and strong economic growth would be key to the RBA raising rates, with the possibility of two more hikes in 2026, according to a Reuters Poll.

Focus would also be on the commentary for future monetary policy decisions, especially inflation worries fuelled by conflict in the Middle East.

Back on the bourse, financials gained 0.5%, set for third straight session of gains. All the “Big Four” banks rose between 0.1% and 0.8%.

Heavyweight miners advanced 0.9%, with Rio Tinto, BHP and Fortescue gaining between 0.4% and 1.7%. Gold stocks added 0.4% in early trade with Evolution Mining rising 1%, set for its biggest climb since March 10.

Bucking the trend, energy stocks fell 1.1%, on track to snap its four-session rally. Energy producers Santos and Woodside Energy decline 0.8% and 1.1%, respectively.

Oil prices slid after some vessels sailed through the Strait of Hormuz, despite US allies rebuffing President Donald Trump’s call for help in unblocking the strait.

Among individual stocks, coal miner New Hope Corporation fell as much as 12.6%, its biggest drop since late September 2022, after it posted a sharp drop in first-half profit, pressured by weaker coal prices.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.1% to 13,175.99.