Australian shares rise as commodity stocks jump; RBA minutes in focus
Gold, energy stocks rise more than 1%
ASIC sues NAB
RBA minutes due Tuesday
Updates to close
By John Biju
Nov 18 (Reuters) -Australian shares edged higher on Monday fuelled by a jump in resources-focused stocks which benefited from strong prices, while the country's corporate regulator sued National Australia Bank NAB.AX for ignoring hardship application deadlines.
The S&P/ASX 200 index .AXJO closed 0.2% higher at 8,300.2 points.
The Australian Securities and Investments Commission launched civil penalty proceedings against the country's second-largest lender National Australia Bank NAB.AX for failing to respond to hundreds of financial hardship applications within the legally mandated time frame.
Shares of the lender closed 0.2% lower while the broader financial sub-index .AXFJ closed 0.3% lower.
Financials have gained more than 32% this year benefiting from a high interest rate environment which has boosted margins.
Markets are now awaiting the minutes of the Reserve Bank of Australia's (RBA) latest policy meeting due on Tuesday for further clues on monetary policy as rates remain at over a decade high.
After a strong run in financials, investors will be more susceptible to any positive reactions in materials and energy sectors while any hint of a one-day rotation could see them selling banks and booking profits, said Chris Weston, head of research at Pepperstone brokerage.
Commodity stocks, which account for a large portion of the benchmark equity index, benefited from a rise in iron ore prices due to firm demand coupled with gold prices surging 1%. Meanwhile, oil prices edged higher. IRONORE/ GOL/ O/R
"We're seeing a better bid in China equity today, and that seems to be supporting materials plays after a poor week last week," said Weston.
"Investing in China proxies could offer strong returns in the coming months, but it comes with risk."
Australian mining stocks .AXMM jumped 1.3% with top miners BHP Group BHP.AX and Rio Tinto RIO.AX climbing 0.7% and 2.2%, respectively.
Gold .AXGD and energy stocks .AXEJ advanced 1.5% each.
Healthcare .AXHJ and technology stocks .AXIJ retreated 0.9% and 0.8%, respectively.
New Zealand's benchmark S&P/NZX 50 index .NZ50 climbed 0.6% to 12,764.65.
Reporting by John Biju in Bengaluru; Editing by Mrigank Dhaniwala
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