Australian shares gain on strength from gold, mining stocks

Australian shares climbed on Thursday, led by gains in mining and gold stocks, while a central bank official warned of an interest rate hike if inflation risks crystallised.

The S&P/ASX 200 index rose 0.3% to 9,072.30 by 0125 GMT, on track to snap a sixth straight session of losses. The benchmark fell 0.2% on Wednesday.

Reserve Bank of Australia Deputy Governor Andrew Hauser warned the central bank will have to raise interest rates again if upside risks to inflation crystallise, underscoring the RBA’s hawkish tone and its resolve to bring stubborn inflation under control.

The RBA held rates at 4.35% last week, after lifting them by 75 basis points since February to curb stubborn inflation, while warning that further tightening remains possible.

Also, data showed that Australian employment unexpectedly fell in July, while the unemployment rate rose to its highest since late 2021.

On the local bourse, miners rose as much as 3.4% to more than a two-month high on the back of strong copper and iron ore prices, with BHP Group and Rio Tinto gained as much as 3%.

Fortescue struggled for direction after the world’s fourth-largest iron ore miner logged a rise in annual profit, but flagged higher costs and declared its lowest dividend in eight years.

Fortescue last traded flat.

Gold stocks advanced as much as 8.9% to their highest level since early March on strong bullion prices.

Gold miner Northern Star Resources surged as much as 8.4% to its highest level since mid-April, after reporting a 24% rise in full-year net profit.

Tech stocks climbed as much as 3.6% and health stocks jumped as much as 1.9%. However, banks shed nearly 2%, with the “Big Four” banks all trading around 1% down.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index was up 0.2% at 13,966.11.