Australian shares rose to a more than nine-month closing high on Thursday, helped by gains in gold and tech stocks, after Federal Reserve Chair Jerome Powell’s comment raised hopes that the US central bank would soon end its interest rate-hike spree.

The S&P/ASX 200 index settled 0.13% higher at 7,511.60, its highest close since April 21. The Fed delivered an expected 25 basis-point rate increase after a year of larger hikes and said it had turned a key corner in the fight against inflation.

Markets saw Powell’s comments on the “disinflationary” process being underway as dovish. Investors are now awaiting policy decisions from the Bank of England and the European Central Bank later in the day and from the Reserve Bank of Australia on Tuesday.

The Australian central bank is widely expected to deliver a fourth consecutive quarter-point rate hike next week.

Nick Twidale, chief executive officer of APAC at FP Markets, expects the RBA to be “relatively hawkish”, considering weaker retail sales data and relatively strong inflation.

Analysts at Citi believe risks are tilted to the hawkish side with a “non-trivial likelihood of a 50 basis-point increase”, considering inflation remains above the central bank’s target.

Miners lift Australian shares on China factory data, Fed decision in focus

They now expect two more 25-bp rate hikes after February to bring down inflation. Gold stocks jumped 4.2%, with sector major Newcrest Mining and Northern Star Resources gaining 3.7% and 4.6%, respectively.

Tech stocks rose 3.2%, hitting their highest since September 2022.

Heavyweights Xero Ltd and ASX-listed shares of Block Inc gained 7.5% and 5.9%, respectively. Miners slipped 0.4%, with Rio Tinto down 2.3%.

Banks declined 0.4%, with the “big four” banks down between 0.4% and 0.7%.

Energy stocks fell 0.9%, with Santos and Woodside Energy losing 1.6% and 1.0%, respectively.

New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 12,152.16, its highest close since March 22.