Australia: Shares edge higher ahead of central bank decision

AUSTRALIAN shares inched up in choppy trading on Tuesday (Nov 1) ahead of a key central bank interest rate decision, despite poor performance from Wall Street overnight, while software firm ReadyTech soared nearly 30 per cent on a buyout offer.

The S&P/ASX 200 index rose 0.1 per cent to 6,867.3. The benchmark ended up 1.2 per cent on Monday.

Wall Street ended lower overnight, with major indexes falling as investors were reluctant to hold positions ahead of the Federal Reserve’s policy meeting this week.

The Reserve Bank of Australia is expected to raise interest rates by a modest 25 basis points for the second straight month later in the day, according to a Reuters poll, despite the highest inflation in three decades.

Three of Australia’s “Big Four” banks shed close to 1 per cent each ahead of the decision, due at 0330 GMT. The broader financial index fell about 0.3 per cent.

The mining index rose 0.63 per cent, with lithium explorers leading the gains. Pilbara Minerals added 3 per cent, while Allkem gained 2.3 per cent.

Heavyweight miners such as Rio Tinto and BHP Group added 1 per cent each despite weaker iron ore prices on Monday.

Shares of ReadyTech surged about 31.2 per cent after the company received a US$308 mln buyout offer from a private equity firm.

Energy stocks added 0.4 per cent, with sector major Woodside Energy gaining 0.8 per cent. Origin Energy also rose 5.7 per cent, extending gains to a second session, after posting higher quarterly revenue on Monday.

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Australia: Shares post best monthly gain since March; RBA decision in focus

New Zealand’s benchmark S&P/NZX 50 index fell about 0.1 per cent to 11,329.53 in early trade.

The country’s central bank said a preliminary analysis of its climate change stress test indicated river and surface water flooding may pose an even greater risk to lenders’ residential mortgage portfolios than coastal flooding. REUTERS