Australian shares inched higher on Wednesday, helped by gains in mining and gold stocks, while investors digested Federal Reserve minutes that showed the US central bank was likely to maintain a restrictive stance for some time.
The S&P/ASX 200 index rose 0.1% to 7,085.00 by 0021 GMT.
The benchmark had closed 0.3% higher on Tuesday.
Minutes of the Fed’s Oct. 31-Nov. 1 meeting showed that the central bank would proceed “carefully” and only raise interest rates if progress in controlling inflation faltered.
On Tuesday, Reserve Bank of Australia Governor Michele Bullock said inflation would remain a crucial challenge over the next one to two years.
In Sydney, gold stocks led gains with a 1.5% rise after bullion prices climbed overnight on expectation that US interest rates had peaked.
Sector majors Northern Star Resources and Evolution Mining rose 1.4% and 0.5%, respectively. Heavyweight mining stocks climbed 0.6% on the back of strong underlying commodity prices.
BHP Group, Rio Tinto and Fortescue advanced 1.1%, 0.7% and 0.9% respectively.
Commodity stocks lift Australian shares; investors assess RBA minutes
Energy stocks climbed 0.4%, with Woodside Energy and Santos rising 0.1% and 0.3%, respectively. Santos forecast a fall in 2024 output, as its Bayu-Undan gas field’s life comes to an end and production from the West Australian offshore field declines.
Technology stocks fell 1.2% after the Nasdaq closed lower overnight.
Xero shed 2.1%, while Life360’s Australian shares dropped 6.5%, making them the top loser on the sub-index. Financials were up 0.1% after early losses, with the “Big Four” banks trading higher in a range of 0.1% to 0.3%.
New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to 11,130.76.
Shares of EBOS Group dropped as much as 7.4% after the Australasian pharmaceutical distributor shelved a $2.44 billion deal to buy Australian vet chain Greencross.
Source: brecorder.com
