Australian shares inch higher after rout, RBA decision in focus
Aug 6 (Reuters) -Australian shares inched higher on Tuesday after shedding nearly 6% in the previous two sessions, as gains in financials offset losses in commodity stocks, while investors awaited a central bank policy decision due later in the day for further direction.
The S&P/ASX 200 index .AXJO rose 0.1% to 6,657.2 by 0038 GMT after a 3.7% drop on Monday, while the Aussie dollar was 0.58% weaker against the U.S. dollar at A$0.65.
The benchmark stock index had lost 5.8% in the previous two sessions, after weak U.S. jobs data last week sparked fears the world's largest economy could be heading towards a recession.
Data on Friday showed the U.S. unemployment rate jumped to near a three-year high in July, leading market participants to price in a near 90% chance that the Federal Reserve will ease rates by 50 basis points in September. FEDWATCH
The Reserve Bank of Australia (RBA) is scheduled to meet later in the day, where it is expected to leave rates unchanged.
In Sydney, rate-sensitive financials .AXFJ rose 0.6%, with National Australia Bank NAB.AX and Commonwealth Bank of Australia CBA.AX up 0.3% and 1%, respectively.
Energy stocks .AXEJ fell about 2% to hit their lowest since March 2022 after oil prices closed lower overnight. Sector heavyweight Woodside WDS.AX shed 3.7%. O/R
Brent crude LCOc1 futures rose 1.7% to $77.60 a barrel on Tuesday, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 1.92% to $74.34 per barrel.
Gold stocks .AXGD fell 2.1%, tracking weak bullion prices. Northern Star Resources NST.AX and St Barbara SBM.AX slipped nearly 2% and 4.6%, respectively.
The U.S. Dow Jones Industrial Average .DJI fell 1,033.99 points, or 2.60%, to 38,703.27 on Monday. The S&P 500 .SPX, .SPX lost 160.23 points, or 3.00%, while the Nasdaq .IXIC fell 576.08 points, or 3.43%.
In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 0.7% to 12,170.62.
Reporting by Ayushman Ojha and Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu
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