Australia shares end higher on broad-based rally; Powell's speech in focus

Reuters

Australia shares end higher on broad-based rally; Powell's speech in focus

9. Jul. 2024 um 7:33 vorm. GMT

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U.S. Fed Chair testimony on Tue, Wed

Telstra hits 3-month high

Tech stocks rise for third straight session

Commonwealth Bank of Australia touches record-high

By Sneha Kumar

July 9 (Reuters) -Australian shares ended higher on Tuesday in a broad-based rally, tracking a record Wall Street finish overnight, while investors awaited Federal Reserve Chair Jerome Powell's testimony to gauge the outlook on interest rates.

The S&P/ASX 200 benchmark index .AXJO closed 0.9% higher at 7,829.7 points, after falling 0.8% on Monday.

Market players will closely watch Powell's testimony in Congress on Tuesday and Wednesday for hints of a dovish tone after signs of an easing labour market last week revived hopes of a September rate cut. FEDWATCH

Central banks around the world, including the Reserve Bank of Australia, will be looking at the Fed's move to chart their interest rate trajectory.

In Wall Street, S&P 500 .SPX and Nasdaq .IXIC touched new record highs overnight. .N

Gains in the local bourse were led by financials .AXFJ, which rose 1.4% to close at a two-week high. The country's top lender Commonwealth Bank of Australia CBA.AX climbed 1.8% to a record high.

"I think banks remain popular for any funds that want exposure to Australian stocks but don’t wish to be exposed to the uneven Chinese economy or its property sector," said Tony Sycamore, a market analyst at IG Australia.

Miners .AXMM gained 0.6%, tracking broader market sentiment despite falling iron ore prices. BHP BHP.AX and Rio Tinto RIO.AX added 0.6% each.

Tech stocks .AXIJ rose for the third straight day with a gain of 0.8%, amid a AI-driven rally in global chipmakers.

Nvidia NVDA.O rose almost 2% on Monday, while the world's largest contract chipmaker Taiwan Semiconductor Manufacturing (TSMC) 2330.TW, TSM.N briefly touched a market cap of $1 trillion as its U.S. stock reached a record high.

Buy now-pay later firm Zip ZIP.AX ended 4.3% higher and tech major Megaport MP1.AX closed 1.6% higher.

Telecom firm Telstra TLS.AX closed up 2.2%, notching a three-month high, after it raised mobile phone pricing plans.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.9% to a three-week high.

The country's central bank is widely expected to deliver a hawkish hold on Wednesday.

Reporting by Sneha Kumar in Bengaluru; Editing by Varun H K

For more information on DIARIES & DATA:
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