Australia: Shares hit over 1-week high on miners boost
AUSTRALIAN shares on Monday (Sep 12) closed at their highest in more than a week, lifted by miners and banking stocks, with investors awaiting a critical reading on US inflation due on Tuesday.
The S&P/ASX 200 index ended 1 per cent higher at 6,964.5 points. The benchmark also marked a rise for a third consecutive session.
“There’s a general consensus that the ASX is looking more attractive,” said Brad Smoling, managing director at Smoling Stockbroking.
“We should have a reasonable sort of rally this week on the ASX.”
Global markets are eyeing US consumer prices report for August for any signs of cooling in inflation, which could impact the Federal Reserve’s aggressive policy tightening path.
Australia’s unemployment rate for August is also on investors’ radar, with data for it scheduled to be released later this week.
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The metals and mining index led gains, climbing 2.2 per cent to hit a more than 1-week high. Iron ore futures rose to 2-week highs last week.
Heavyweights BHP Group, Rio Tinto and Fortescue Metals rose between 1.8 and 3.5 per cent.
Financials advanced 1.1 per cent, with the country’s 4 largest lenders rising between 0.5 and 1.4 per cent. Westpac joined the other 3 “Big Four” banks and raised its variable home loan interest rates by 50 basis points.
Technology stocks gained 1.5 per cent as they tracked Wall Street’s rally on Friday. ASX-listed shares of Block ended 4.9 per cent higher, while Computershare and Xero advanced 1.8 per cent and 0.9 per cent, respectively.
An overnight uptick in bullion prices also supported gold stocks, adding 0.3 per cent to hit a 2-week high. Newcrest Mining and Northern Star Resources rose 0.5 per cent and 0.1 per cent, respectively.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 closed 0.5 per cent higher at 11,813.21 points, hitting an over 3-week high. Dairy firm a2 Milk rose 2.9 per cent and was among the top gainers. REUTERS
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