Australian shares edged higher on Monday led by miners amid broad-based gains, as positive comments from the US Federal Reserve Chair cementing hopes of an interest rate cut in September buoyed sentiment. The S&P/ASX 200 index rose 0.4% to 8,054.6 as of 0026 GMT.

The benchmark index ended flat in the previous session.

Fed’s Powell said on Friday that the “time has come for policy to adjust”, sending strong signals of a policy easing starting from September.

The US S&P 500 index closed up 1.15% at 5,634.61 on Friday, while Nasdaq gained 258.44 points, or 1.47%. S&P 500 E-minis futures were down 7.75 points, or 0.14%.

In Australia, investors will be looking forward to inflation data, due on Wednesday, amid a corporate earnings heavy week.

The Aussie dollar was last up 0.15% against the US dollar to A$0.68 on Monday.

Rate-sensitive financials were up as much as 0.3%, with the ‘Big Four’ banks advancing between 0.5% and 0.8%.

Local miners rose 0.4%, buoyed by gains in underlying commodity prices last week.

Chinese iron ore futures on the Dalian Commodity Exchange rose 0.3% on Friday. Mining giants BHP Group and Fortescue were up 0.3% and 0.9% respectively, while Rio Tinto was down 0.4%.

Energy stocks also advanced 1.1%, boosted by rising oil prices.

Brent crude futures rose 0.68% to $79.56 a barrel while US West Texas Intermediate (WTI) crude gained 0.67% to $75.33 per barrel.

Australian shares hit record high; RBA cautious on inflation

Energy giant Woodside Energy rose 0.9%, while smaller rival Santos fell 1.2%. Rate-sensitive technology stocks also moved up 1%, with tech giant Xero rising around 0.3%.

Real estate stocks were up 1.6%, led by sector major Lendlease Group rising 1.3%.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 12,561.91.