Australian shares end higher as miners, energy stocks gain

Reuters

Australian shares end higher as miners, energy stocks gain

7:35 sáng giờ GMT, 3 Tháng 7 2024

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Mining stocks rise over 1%

Energy stocks post 7th session of gains

May retail sales stronger-than-expected

Updates to close

By John Biju

July 3 (Reuters) -Australian shares closed higher on Wednesday, helped by gains in mining and energy stocks, while dovish comments from Federal Reserve Chair Jerome Powell that reinforced bets of a rate cut this year boosted investor sentiment.

The S&P/ASX 200 index .AXJO advanced 0.3% to 7,739.9 at the close of trade after falling 0.4% on Tuesday.

Heavyweight mining stocks .AXMM advanced 1.1% after iron ore prices rose on demand expectations from top consumer China. IRONORE

Shares of BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX rose more than 1% each.

Energy stocks .AXEJ climbed 0.6% posting their seventh session of straight gains as oil prices rose on the back of data showing a bigger-than-expected draw in U.S. crude stockpiles. O/R

On Tuesday, Powell said that the U.S. is back on a "disinflationary path" after recent data pointed to weakening cost pressures but he also cautioned that policymakers needed more data before cutting rates.

The market is digesting the Fed Chair's comments and some positive local retail numbers, Brad Smoling, Managing Director at Smoling Stockbroking said.

In Australia, data showed domestic retail sales were stronger than expected in May, despite persistent inflation in the country. "Today's data is just one piece of information the RBA will receive before its August meeting," ANZ analysts wrote in a note, adding that the Reserve Bank of Australia could likely begin cutting rates in February 2025.

Technology stocks .AXIJ jumped 1.4% tracking gains in their Wall Street peers, while real estate stocks .AXRE climbed 0.9%.

Meanwhile, financial stocks .AXFJ declined 0.4% with National Australia Bank NAB.AX and ANZ Group ANZ.AX falling 0.7% and 0.4%, respectively.

New Zealand's benchmark S&P/NZX 50 index .NZ50 advanced 0.1% to 11,790.92.

Reporting by John Biju in Bengaluru; Editing by Janane Venkatraman

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