Australia: Shares climb as miners hit record high; RBA meeting in focus

[BENGALURU] Australian shares closed higher on Monday (Apr 4) after a surge among lithium producers led mining firms to a record high, while gold stocks rallied as the threat of more Western sanctions against Russia over its invasion of Ukraine lifted safe-haven demand.

The S&P/ASX 200 ended 0.27 per cent higher at 7513.7 points, after posting a third straight weekly gain on Friday.

Global energy and commodity prices have surged this year on the prospect that Russia's invasion will intensify supply shortages.

The mining sub-index led the gains with lithium miners IGO and Allkem hitting a record high.

Pilbara Minerals advanced as much as 7 per cent while iron ore major Fortescue Metals added 3 per cent.

While Russia-Ukraine peace talks dragged on, reports of Russian atrocities led Germany to say the West would agree to impose more sanctions in coming days.

The gold sub-index climbed as much as 2.5 per cent to scale a near 3-week high even as bullion prices retreated slightly. Australia's largest gold miner Newcrest advanced nearly 2 per cent.

"I think the companies that are making money now are the gold miners and some of these metal miners... they are going to be sought after," said Brad Smoling, managing director at Smoling Stockbroking.

Investment manager Pendal Group, which topped the ASX 200 index with a 24 per cent surge, got a A$2.4 billion (S$2.45 billion) non-binding takeover offer from asset manager Perpetual .

Energy stocks rose as much as 1 per cent as oil prices inched higher. Heavyweights Woodside Petroleum and Santos climbed as much as 1.4 per cent and 0.8 per cent, respectively.

Markets awaited the Reserve Bank of Australia's (RBA) rate decision due on Tuesday. While a Reuters poll found that the central bank is expected to hold rates at 0.1 per cent, investors will also note its commentary on increasing price pressures.

In New Zealand, the benchmark S&P/NZX 50 index closed 0.3 per cent lower at 12053.19. REUTERS