Australian shares rise as commodity-linked stocks advance
- The benchmark S&P/ASX 200 index was 0.5% higher at 8,725.70 points
Australian shares rose on Monday, supported by gains in mining, financial and energy stocks, while investors continued to assess the outlook for interest rates after the central bank lifted its cash rate to a 15-year high last week.
The benchmark S&P/ASX 200 index was 0.5% higher at 8,725.70 points, as of 0031 GMT, after a 0.2% gain last week.
Markets remained focused on the likelihood of further policy tightening after the Reserve Bank of Australia warned that inflation risks were still elevated and reiterated its willingness to raise rates again if price pressures persist.
Although inflation accelerated in August as higher fuel prices lifted living costs, it came in below estimates, offering some relief to investors and reducing bets on another rate increase in November.
Mining stocks rose 0.7% on Monday, supported by firmer underlying commodity prices.
Iron ore heavyweights Rio Tinto and BHP climbed more than 1% each.
Banks gained 0.6% and were on track for a second straight session of gains.
The “Big Four” lenders all traded higher, led by a more than 1% rise in Westpac. Energy stocks rose 0.2% on elevated oil prices.
Sector majors Woodside Energy and Santos were up 0.3% and 1.1%, respectively.
Healthcare stocks rose 0.7%, with CSL up as much as 1.3% after the biotech company struck a deal worth up to $1.6 billion with Switzerland’s Alentis Therapeutics to jointly develop treatments for rare kidney and liver diseases.
Gold stocks gave up early gains to trade down 0.2%, while technology stocks were flat. Sector majors WiseTech fell 2.2% and Xero lost 1%, making both stocks among the index’s worst performers.
Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index rose about 0.3% to 13,715.10 points.
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