Australian shares close higher; U.S. inflation reading in focus

Reuters

Australian shares close higher; U.S. inflation reading in focus

6:25 sáng giờ GMT, 28 Tháng 6 2024

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Traders await the U.S. PCE data

Miners hit worst half-year since late 2015

Banks logged best half-year since mid-2021

Updates to close

By Rajasik Mukherjee

June 28 (Reuters) -Australian shares closed higher on Friday, boosted by banks, real estate and tech stocks while traders awaited a U.S. inflation reading due later in the day to gauge the Federal Reserve's monetary policy trajectory.

The S&P/ASX 200 index .AXJO closed 0.1% higher to 7,767.50 at the close of trade. The index snapped a two-session falling streak.

Wednesday's unexpectedly higher inflation reading for May, prompted a bout of jitters over a potential rate hike by the Reserve Bank of Australia, with a few brokerages forecasting one in August. The RBA's key interest rate is currently at a 12-year high of 4.35%.

"Overall uncertainty by way of central bank policy and the response expectations from the RBA has given us a lacklustre return on the ASX this year," said Brad Smoling, managing director at Smoling Stockbroking.

Investors awaited the U.S. personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation. A hotter-than-expected PCE data would push back rate-cut hopes among investors.

In Australia, rate-sensitive financials gained 0.8% with three of the "Big Four" banks rising between 0.2% and 0.6%. The sub-index logged its best half-year since mid-2021.

Suncorp SUN.AX soared 3.4%, hitting its highest level since 2007, on receiving clearance on ANZ Group's ANZ.AX buyout of the former's banking business.

Another rate-sensitive sub-index, real estate .AXRE rose as much as 0.3% on Friday, but lost 3.3% this week, its worst since April 19.

Tech stocks .AXIJ gained 0.9% tracking a rise in U.S. peers.

Miners .AXMM lost 1%, with the sub-index posting its worst half-year since late 2015.

Markets in New Zealand were closed for a public holiday.

Reporting by Rajasik Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala

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