Bank stocks lift Australian shares ahead of c.bank rate decision
June 18 (Reuters) -Australian shares advanced higher on Tuesday, with banks stocks soaring to a record high and all other sectors trading in green, ahead of the central bank's interest rate decision, where it is widely expected to maintain status quo.
The S&P/ASX 200 index .AXJO rose 0.8% to 7,764.90 by 0053 GMT. The benchmark closed 0.3% lower on Monday.
The Reserve Bank of Australia's cash rate, at 4.35%, is at its highest level since December 2011 and financial stocks tend to rally on the expectations of higher-for-longer interest rates.
Traders in the Australian rates market are pricing in only 15 basis points of easing this year, and barely 50 bps in total by the end of 2025.
The RBA will likely hold its rate for a fifth straight meeting on Tuesday over persistent price pressures, according to all economists polled by Reuters.
Financials .AXFJ hit a record high in early trade, climbing as much as 1.13%, with the 'Big Four' banks advancing between 0.6% and 1.3%.
Healthcare firms .AXHJ rose 1%, with sector giant CSL CSL.AX rising 1.2%.
Real estate stocks .AXRE, which are also interest rate-sensitive, rose 1% in tandem with the broader rally.
Property groups Mirvac Group MGR.AX and Charter Hall Group CHC.AX rose 1.5% and 2%, respectively.
Local gold stocks .AXGD struggled for momentum in early trade, falling as much as 0.1% before rising 0.3%, fluctuating between falling gold prices and the broader positive sentiment. GOL/
Gold miner Gold Road Resources GOR.AX rose 1.6%.
Bucking the trend, miners .AXMM gained 0.2%, after hitting their lowest level since Nov. 11, 2022 earlier.
While mining giants BHP Group BHP.AX and Rio Tinto RIO.AX rose 0.2% and 0.5%, respectively, Fortescue FMG.AX fell 4.8%.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.9% to 11,808.92, due to caution ahead of first-quarter gross domestic product data due later this week.
Reporting by Shivangi Lahiri in Bengaluru; Editing by Rashmi Aich
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