Australian shares rise as banks, gold miners rally ahead of RBA decision

Australian shares inched higher on Monday, supported by banks and gold miners, as investors awaited a central bank policy meeting this week that is widely expected to deliver an interest rate hike.

The S&P/ASX 200 index was up 0.2% at 8,683.5 points, as of 0011 GMT.

The benchmark closed 0.4% lower on Friday.

Attention is now fixed on the Reserve Bank of Australia’s (RBA) policy meeting on Tuesday, with markets pricing in a fourth rate hike as persistent inflation pressures outweigh mixed labour data that did little to alter expectations last week for further tightening.

Investors will focus less on the decision itself and more on the central bank’s tone for clues on the policy path beyond September. Additionally, markets will be watching Australia’s inflation print for last month due on Wednesday, after July’s core inflation exceeded forecasts.

Financials rose 0.4% on the day, with National Australia Bank, Westpac and ANZ Group up between 0.4% and 0.6%.

Gold stocks advanced as much as 2.2%, led by Northern Star Resources, which jumped more than 10% to a one-month high after the Perth-based miner rebuffed a A$38.7 billion ($27.16 billion) buyout offer from South Africa’s Gold Fields.

Mining stocks edged 0.2% higher, while technology shares gained 0.4%, tracking strength in their overseas peers.

In contrast, energy stocks fell 0.7% and consumer staples lost roughly 1%, putting the sector on track for its biggest decline since mid-September.

In corporate news, Ingenia Communities advanced 7.1% as the property developer said it is considering a A$2.14 billion takeover bid from US-based private equity firm Warburg Pincus after rejecting two approaches previously.

The stock was among the top gainers in the benchmark index.

New Zealand’s S&P/NZX 50 index rose 0.4% to 13,861.58 points.