Australian shares hit record highs as bank stocks rally

Reuters

Australian shares hit record highs as bank stocks rally

12 lug. 2024, ore 7:05 GMT

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Developers and banks gain

BHP drops post WA nickel ops suspension

NZ50 at 17-month high

Updates to close

By Sneha Kumar

July 12 (Reuters) -Australian shares hit record highson Friday, led by banks, after data showed weaker-than-expected June U.S inflation and helped firm bets of an interest rate cut in September by the Federal Reserve.

The S&P/ASX 200 index .AXJO hit an all-time high of 7,969.1 during the session, but trimmed some gains to log a record closing high of 7,959.3 points, 0.9% higher, at the end of trade.

U.S. consumer prices fell unexpectedly in June, boosting odds of a 25-basis-point rate cut in September to 85%, according to CME FedWatch. A Fed rate cut would impact the Reserve Bank of Australia's rate-cut stance as well.

Australian banks .AXFJ rose for a fourth consecutive session and were among the major gainers on the benchmark. They ended 1%higher at a record-high close,driven by a 1.8%rise in National Australia Bank NAB.AX.

The index gained 3.03% in the four sessions.

"Banks also benefit from a healthier economy and expectations of lower interest rates as these can boost investor appetite and desire for loans," said Tim Waterer, KCM Trade's chief market analyst.

Property developers Goodman Group GMG.AX, Scentre Group SCG.AX and Stockland Corp SGP.AX closed higher between 0.4%and 3%.

Core Lithium CXO.AX jumped 12.5%, leading the gains among miners .AXMM, which rose 0.5% onhigher commodity prices.Rio Tinto RIO.AX and Fortescue FMG.AX closed the day 0.2% and 0.4% higher, respectively.

However, BHP Group BHP.AX fell 0.4% after it announced a temporary suspension of its nickel business in Western Australia amid a price plunge and oversupply issues.

Australian consumer stocks were also up on rate-cut possibilities. Electronics retailer Harvey Norman HVN.AX and home entertainment retailer JB Hi-Fi JBH.AX added 2.4% and 1.3%, respectively.

Tech .AXIJ dropped 1.2%, tracking U.S. stocks,which ended lower overnight after a drag in large-cap technology firms. Australian stock transfer company Computershare CPU.AX and software maker WiseTech Global WTC.AX lead losses in the index, falling 3.9% and 3.4%, respectively.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.6% to a near 17-month high. The index logged best week since early November, with a 2.9% gain.

Reporting by Sneha Kumar in Bengaluru; Editing by Janane Venkatraman

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