Australian shares ended higher for the sixth straight session on Monday, as gains in banks and energy stocks outweighed losses in miners, with investors squarely focussed on a U.S. central bank policy decision due later in the week.

The benchmark index S&P/ASX 200 rose 0.3% to 7,578.4, its highest close since Jan. 2.

The U.S. Federal Reserve is widely expected to stand pat at the end of its two-day meeting on Wednesday, leaving the focus on Fed Chair Jerome Powell and his comments for clues on when the first interest rate cut might come.

“Australian investors will be keeping a close eye on what tone the FOMC (Federal Open Market Committee) strikes this week about inflation and interest rates. Actions by the Fed concerning monetary policy can have a flow-on effect on the global economy,” said Tim Waterer, chief market analyst at brokerage KCM Trade.

New Zealand shares snap 4-day rally but set for weekly gain; Australia closed

“Any indications that the Fed could delay the start of the rate-cutting cycle in the US could potentially also push out the timeline for policy easing by the RBA (Reserve Bank of Australia).”

In Sydney, financials led the gains, rising 0.7% to their highest close since May 2017. The “Big Four” banks climbed between 0.7% and 1.1%.

Energy stocks rose 1.8%, as oil prices jumped after a drone attack on U.S. forces in Jordan added to worries over supply disruption in the Middle East.

Sector heavyweights Woodside and Santos were up 2.3% and 1.7%, respectively.

Heavyweight miners fell 0.6%, with BHP Group losing 1.4% as legal concerns in Brazil weighed on the iron ore behemoth.

“BHP was trading in the red and this negatively impacted sentiment for some other miners. Legal concerns for the company in Brazil have left traders a bit worried about potential compensation costs,” Waterer said.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.3% to 11,911.89, its highest close since early August 2023.