Australian shares end lower; New Zealand keeps rates on hold
RBNZ keeps cash rate unchanged
Global investors assess Fed official's comments for clarity on rate cuts
Webjet top gainer on benchmark after positive annual results
Updates to close
By Sherin Sunny
May 22 (Reuters) -Australian shares ended slightly lower on Wednesday as a rally in mining and banking stocks was offset by a drag in gold and energy shares while investors in New Zealand took cues from the local central bank's monetary policy meeting.
The S&P/ASX 200 index .AXJO closed 0.1% lower at 7,848.10 points.
New Zealand's .NZ50 closed the day 0.5% higher at 11,732.28 points after the central bank decision.
The Reserve Bank of New Zealand held its cash rate steady at 5.5% as expected, but lifted its forecast peak for rates and expects to not start cutting rates until the third quarter of 2025, citing persistent inflation.
Analysts at ANZ Research said in a note that the unchanged cash rate was expected, while the RBNZ raising its forecast peak was a shock to markets. They expect the first rate cut in May 2025.
Global investors now await minutes of the U.S. Federal Reserve's latest policy meeting.
In Australia, digital travel business Webjet WEB.AX emerged as the top gainer as it posted a 40% jump in its annual earnings. Shares closed the session 7.7%higher. The country's largest telecommunications firm, Telstra Group TLS.AX, was a major drag, ending the day 4.2%lower at A$3.4.
Analysts have signalled a poor outlook and share performance by telecom firm after it declared plans to stop its traditional annual inflation-linked price adjustments for mobile plans amid stiff competition.
Among sub-indexes, mining stocks .AXMM closed 0.2%higher tracking surging iron-ore prices on improved demand prospects from top customer China. IRONORE/
Mining behemoths BHP BHP.AX and Rio Tinto RIO.AX closed 0.7% and 1.7% higher, respectively.
Rate-sensitive financials .AXFJ closed 0.3%higher with the three of the "Big Four" banks closing between 0.2% and 1.2% higher. Commonwealth Bank of Australia CBA.AX closed 0.2% lower.
Among other sub-indexes, gold stocks .AXGD and energy stocks .AXEJ closed 0.8%and 0.7% lower, respectively.
Reporting by Sherin Sunny in Bengaluru; Editing by Nivedita Bhattacharjee
For more information on DIARIES & DATA: U.S. earnings diary RESF/US Wall Street Week Ahead .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets NEWS1
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
