Banking stocks lifted Australian shares on Tuesday, with miners adding to the gains after index heavyweight BHP Group reported higher second-quarter production.
The S&P/ASX 200 index was up 0.7% at 8,402.2 at the close.
The benchmark logged its highest close since Dec. 9. Financials gained 1.3%, ending at their highest level since Jan. 8. The ‘big four’ banks rose by 0.7%-1.9%.
Globally, markets are bracing for a slew of policy changes under President Donald Trump.
Investors in Australia are assessing the first hours and announcements of Trump’s return to office and have been moving into safe-haven areas of the market as a result of uncertainties around his policies, said Grady Wulff, a market analyst at Bell Direct.
“Over the last 12 months, we have seen investors bolster their positions in the big four banks of Australia due to their safe-haven nature and secure returns.”
The mining index added 1% on Tuesday to close at its highest since Dec. 12 after BHP Group - the world’s largest listed miner - reported an uptick in iron ore production for the December quarter and a 17% jump in its copper output.
The miner’s shares closed 0.7% higher.
They jumped as much as 1.8% earlier in the day, hitting their highest level since Dec. 13.
The gains in the index were also supported by higher iron ore prices on improving sentiment in China. Gold stocks advanced 1.9% as bullion prices rose.
Australian shares close higher on rate cut prospects; South32 shines
Discretionary stocks gained 0.9%, lifted by a 1.3% rise in top retailer Wesfarmers after it said its loss-making online retailer Catch will cease to operate as a stand-alone entity in fiscal year 2025.
New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to finish the session at 13,052.9 points.
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