Australian shares ease as investors look beyond likely RBA hike

Australian shares inched lower on Tuesday ahead of a widely expected interest rate hike by the central bank, as market participants looked for signals on the path of monetary policy beyond September.

The S&P/ASX 200 index fell 0.1% to 8,670.10 by 0033 GMT after closing 0.2% higher on Monday.

Markets have priced in a 25-basis-point increase in the cash rate to 4.60%, which would mark the central bank’s fourth rate hike this year.

Investors will scrutinise the accompanying statement for clues on whether further tightening is likely.

Focus also remains on August inflation data due on Wednesday after a stronger-than-expected core inflation reading in July reinforced concerns about persistent price pressures.

On the bourse, financials fell 0.5%, with the “Big Four” banks down between 0.4% and 0.6%.

Energy stocks dipped 0.8%, hitting their lowest level since mid-August. Gold miners weakened 0.5% after bullion prices hit a seven-week low, while the broader mining gauge was up 0.4%.

Real estate stocks and consumer staples declined 0.9% and 0.5%, respectively.

Offering some support to the market, healthcare stocks rose 0.7%, hitting their highest since mid-February.

Technology stocks jumped as much as 4% after two straight sessions of falls and touched their highest in a week.

Shares of Megaport soared as much as 20.5% after the company secured three AI infrastructure contracts totalling A$978.6 million ($686.19 million) and upgraded its earnings forecast for 2027.

Codan surged 17.9% to a record A$61.30 after forecasting annual net profit after tax of A$160 million, up from A$71.2 million a year earlier.

New Zealand’s benchmark S&P/NZX 50 index fell 0.5% to 13,755.90.