Australian shares extend gains as miners jump to record high

Australian shares rose for a fourth consecutive session on Thursday, as miners jumped to a record high on the back of strong base and precious metal prices, although defensive positioning on Wall Street overnight weighed on sentiment.

The S&P/ASX 200 index advanced 0.4% to 8,851.90 by 2355 GMT.

The benchmark rose 0.1% on Wednesday.

US stocks finished lower on Wednesday as technology shares declined in a wave of defensive sentiment, while banks extended losses following mixed quarterly results.

In Sydney, index heavyweight miners climbed 1.7%, hitting a record high for the third straight session.

Persistent demand from speculative funds helped copper notch new highs on Wednesday.

Iron ore futures also edged higher after China reported its highest ever monthly imports of the steelmaking ingredient and record-high steel exports.

Mining heavyweights BHP and Rio Tinto rose 2.3% and 1.5%, respectively, ahead of their quarterly production results next week.

Copper miner Sandfire Resources rose 1.6% and South32 surged 3.4%.

Gold producers also rose to a fresh peak, in tandem with bullion’s record-breaking rally on safe-haven flows. Financial stocks weighed on the main index, falling 0.3%.

Three of the big four banks slipped between 0.2% and 0.8%, with ANZ the exception.

The sector has lacked a clear direction in recent weeks as the central bank’s interest rate path remains unclear.

Softer November inflation data has reduced market bets for a February rate hike to 20.9% from around 40% last week, although the possibility remains as core inflation stays above the central bank’s target range.

While a rate hike may boost banks’ margins, it also risks dampening mortgage demand.

Among other sectors, healthcare and energy climbed 0.7% and 0.3%, respectively, while technology dropped 1%.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.6% to 13,677.45 points.