Australian shares extended gains for a second straight session on Wednesday led by mining stocks, while investors keenly awaited key US inflation data for clues on the Federal Reserve’s monetary policy path.
The S&P/ASX 200 index rose 0.5% to 7,343.90, its highest closing level since March 7.
The benchmark ended 1.3% higher on Tuesday.
Investors globally are focussed on the US consumer price data due later in the day, which is expected to show core inflation rose 0.4% on a monthly basis and 5.6% year-on-year in March, according to a Reuters Poll.
“Inflation is moving in the right direction, but it may not be falling as fast as the Fed would like, which is what we will find out today,” said Josh Gilbert, market analyst at eToro AUS Capital Ltd.
Additionally, markets are expecting a nearly 74% likelihood of another 25 basis point interest rate hike at the conclusion of Fed’s May monetary policy meeting.
In Australia, miners jumped 1.5% to close at their highest level since March 7, as Dalian iron ore futures edged up on China’s robust loan growth in the first quarter bolstering hopes for an economic rebound for the world’s biggest steel producer.
Australian shares jump in broad-based gains; Newcrest shines on sweetened bid
Fortescue Metals Group, BHP Group and Rio Tinto added between 1.6% and 2.7%.
Gold stocks advanced 0.9% on firm bullion prices, rising for a fifth consecutive session and closing at a near one-year high. Northern Star Resources and ASX-listed shares of AngloGold Ashanti climbed 1.8% and 2.4%, respectively.
On the other hand, energy stocks fell 0.3%, dragged down by Whitehaven Coal slipping 3.2%, after Australia’s largest coal miner lowered its production and sales forecasts for fiscal 2023.
New Zealand’s benchmark S&P/NZX 50 index rose 0.4% to close at 11,917.50.
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