Australian shares edged higher on Friday, helped by gold and technology stocks, as latest US economic data raised bets that the Federal Reserve would soon pause increasing interest rates.
The S&P/ASX 200 index rose 0.1% to 7,329.40 by 0055 GMT, on track for a third straight weekly gain.
Latest US economic data showed a steeper-than-expected slowdown in producer prices and new jobless claims rising above consensus, signalling the rate-hike cycle that began almost a year ago is working as intended.
Futures have priced in a 71.1% chance of the Fed raising its lending rate by 25 basis points when policymakers conclude a two-day meeting on May 3.
In Australia, however, March employment data pointed to a tight labour market.
The jobless rate held near 50-year lows last month, suggesting that the Reserve Bank of Australia might hike rates further. Gold stocks jumped 2.8% to hit their highest since January 2021 and were on track for a fifth straight weekly gain.
Bullion prices rose as more weak US data bolstered bets for a pause in rate hikes, with prospects of a mild recession also lifting the appeal of the safe-haven metal.
Index majors Newcrest Mining and Northern Star Resources advanced 1.9% and 3.3%, respectively. Financials added 0.2%, with the so-called “big four” banks trading in positive territory.
Technology stocks tracked Wall Street higher, rising 0.5% and heading for their third straight weekly gain.
Miners lift Australian shares ahead of US inflation data
ASX-listed shares of Block Inc rose 1.3%, while Xero Ltd added 0.9%. Meanwhile, miners were flat after iron ore futures slumped overnight on prevailing pessimism over steel demand in top producer China. Sector giants BHP Group and Rio Tinto fell 0.7% and 0.8%, respectively.
Among individual stocks, Bank Of Queensland slipped as much as 3.9% after it said it would undertake an integrated risk programme to mitigate risk management, which will reflect A$60 million ($40.71 million) hit in 1HFY23 results.
New Zealand’s benchmark S&P/NZX 50 index fell 0.07% to 11,922.70.
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