Australia: Shares rise as banks gain ahead of RBA meet

AUSTRALIAN shares climbed more than 1 per cent on Monday (Jul 4) after banks gained ahead of a possible half percentage-point rate hike by the Reserve Bank of Australia (RBA) and as a jump in commodity stocks added support.

The S&P/ASX 200 index snapped 3 straight sessions of declines to end the session 1.1 per cent higher. The benchmark slipped 0.4 per cent on Friday.

A Reuters poll found that the RBA is likely to hike its cash rate by 50 basis points again when they meet on Tuesday to tame surging inflation, which hit a 20-year peak in the first quarter of this year.

Robust retail sales and very strong job vacancies data last week further strengthen the case for the central bank to move quickly away from emergency settings, NAB analysts said in a note.

Rate-sensitive financial stocks climbed 0.9 per cent to be among the top gainers, boosted by the “big four” banks.

Commonwealth Bank of Australia, National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking Corp gained between 0.8 per cent and 1.3 per cent.

The gold index climbed 2.6 per cent to record its best session since Jun 17, tracking prices of bullion.

Sector heavyweights Newcrest Mining and Northern Star Resources climbed 2.3 per cent and 3.7 per cent, respectively.

The energy index gained 2.6 per cent as well, despite a fall in oil prices. However, supply concerns limited losses in crude prices.

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Australia: Shares climb 1.5% on banking, commodity boost

Santos advanced 3.3 per cent, followed by Woodside Energy Group, which closed 2.7 per cent higher.

Miners closed 0.2 per cent higher as Rio Tinto and Fortescue Metals climbed 0.4 per cent each.

New Zealand’s benchmark S&P/NZX 50 index rose 1 per cent to finish the session at 10862.34 points. REUTERS