Australia: Shares climb as miners shine, focus on Fed chair’s speech

AUSTRALIAN shares rose on Friday (Aug 26), as strong iron ore prices lifted mining stocks, while investors exercised caution ahead of a key speech by US Federal Reserve chair Jerome Powell for policy cues on interest rate hikes.

Top policymakers are gathering for the Kansas City Federal Reserve’s annual monetary policy conference in Jackson Hole, Wyoming, where Powell is expected to offer clues on the central bank’s path to monetary tightening going forward later in the day.

The S&P/ASX 200 index rose 0.6 per cent to 7,090.5 by 1.00 am GMT. For the week, however, the benchmark is set to end a winning streak of 5 weeks and is down more than 0.3 per cent this week.

Shares in Wesfarmers climbed 0.9 per cent after the retailer disclosed strong sales growth for its units in the new fiscal year so far.

Leading gains on the resource-heavy bourse, domestic miners added 0.8 per cent on strong underlying iron ore prices. The sub-index is on track for a sixth straight weekly gain, up about 1.8 per cent.

Shares in Lynas Rare Earths advanced 1.9 per cent after the miner posted a 3-fold jump in annual profit.

Mining trio Rio Tinto, Fortescue Metals and BHP also advanced between 0.5 per cent and 1.2 per cent.

Heavyweight financials jumped 0.5 per cent, with the country’s ‘Big Four’ banks rising between 0.1 per cent and 0.5 per cent. The sub-index, however, is eyeing its worst week in 10, having lost more than 1.5 per cent.

Bega Cheese added 7.5 per cent after the dairy firm posted a 17 per cent jump in its annual profit over last year.

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Australia: Stocks end higher on broad-based gains

Across the Tasman sea, New Zealand’s S&P/NZX 50 index rose 0.4 per cent to 11,675.5. The benchmark, however, lost 0.1 per cent so far this week.

The Reserve Bank of New Zealand earlier in the day cited that there will be at least another couple of rate hikes going forward. REUTERS