Australian shares rose for a fifth straight session on Monday, helped by gains in miners and financials, as investors gauged the impact of possible interest rate hikes and the lingering Russia-Ukraine crisis.
The S&P/ASX 200 index ended 0.08% higher at 7,412.4, hitting its highest since mid-January. The benchmark had closed 0.3% higher on Friday.
Miners climbed 1.4% in their third straight session of gains, helped by a jump in iron ore prices on China’s decision to boost its short-term fund injection to tackle any tightness in market liquidity.
Australian shares extend gains on mining, energy boost
Sector majors Rio Tinto and Fortescue Metals Group climbed 1.4% and 0.8%, respectively, while BHP Global added 2.3%, hitting its highest since mid-August 2021.
Financials rose 0.6%, supported by gains in the “Big Four” banks.
Westpac Banking Corp rose 1.2%, hitting its highest in about five months, while National Australia Bank added close to 1%, hitting its highest since November 2021.
“The market is rife with speculations that RBA (Reserve Bank of Australia) could lift interest rates by mid-year following a potential rise in consumer prices and wages in the next set of economic data,” said Kunal Sawhney, chief executive officer of Kalkine Group.
Expectations of higher rates dulled the appeal of growth-linked stocks, with the technology sub-index shedding 2.7%, hitting its lowest in about 10 days.
Australia-listed shares of Block Inc plunged 3.7%, while accounting software provider Xero Ltd lost 5.2%. Gold stocks ended 0.7% lower after gaining more than 1% through the session, marking their first session of fall in three.
Bullion prices fell as the US dollar and Treasury yields firmed. Newcrest Mining, Australia’s largest gold miner, shed 0.2%, while Evolution Mining lost more than 2.4%. New Zealand’s benchmark S&P/NZX 50 index ended 1.2% lower at 11,909.7.
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