Australian shares snapped four sessions of losses on Tuesday, helped by banks and miners, as investors awaited inflation and retail sales data due later in the week for further policy direction, while Medibank fell nearly 4% on regulatory action.

The S&P/ASX 200 index closed 0.6% higher at 7,118.2 after a 0.3% fall on Monday. In Asia, stocks shook off earlier losses, helped by assurances that China would support flagging growth in the world’s second-largest economy.

Investors in Australia have been awaiting inflation and retail sales data for monetary policy cues, with the country’s top banks predicting two more quarter-point rate hikes by the Reserve Bank of Australia (RBA) in July and August.

“We could see inflation a little bit lower than the previous reading. But if we see an annualised rate of 6% and higher, that will be a justification for the RBA to maintain its aggressive stance on interest rates,” said Tim Waterer, chief market analyst at KCM Trade.

Looking ahead, “markets will be watching to see if there are any further signs of stimulus from the People’s Bank of China with regards to the Chinese economy”, Waterer said.

In Sydney, miners finished 1.2% higher on prospects of further economic stimulus in China. Sector majors BHP Group and Rio Tinto rose 1.5% and 1.7%, respectively. Heavyweight financials gained 0.7%, with the so-called ‘big four’ banks up between 0.5% and 1.6%.

Australian shares end higher on Wall St strength, rate-hike pause bets

Energy stocks edged up 0.2% as oil prices gained on worries about political instability in Russia.

Woodside Energy added 0.6%.

In corporate news, Australia’s banking regulator told insurer Medibank to set aside $167 million in extra capital, citing weaknesses identified in its information security after a major hacking breach.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.1% to 11,649.20.

New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to 11,625.1 points.