Nov 26 (Reuters) – Australian shares hit a more than one-week high on Wednesday, with banks and miners leading the charge in broad-based buying, while investors braced for a key inflation report that could reshape the interest rate-cut outlook.
The S&P/ASX 200 index climbed 1% to 8,620.50 by 2321 GMT, extending gains to a third session. The benchmark edged 0.1% higher on Tuesday.
The October inflation report, due later in the day, is expected to show that price pressures stayed elevated after a surprisingly strong quarterly reading last month prompted the Reserve Bank of Australia to hold rates and strike a more hawkish tone.
Market swaps show scant odds of an easing until May next year, with a cut of about 36% currently priced in.
Rate-sensitive financials gained 0.9% to hit a more than one-week high with the “big four” banks, under pressure in recent weeks for frothy valuations, rising between 0.5% to 0.8%.
Real estate stocks advanced nearly 2% to touch a near two-week high, with property landlord Goodman Group jumping 2.7%.
Heavyweight miners extended gains to a third session, rising 0.9%, after iron ore prices firmed on Tuesday as proposed cuts to China’s port fees were seen curbing long-term stockpiling.
Mining giants BHP, Rio Tinto and Fortescue rose between 0.7% and 1.6%.
Tech stocks climbed for a third straight session, advancing 0.6% following Wall Street’s gains overnight.
Elsewhere, healthcare and consumer staples rose 1.4% and 0.9%, respectively.
New Zealand’s benchmark S&P/NZX 50 index rose 1.6% to 13,692.85. The country’s central bank is widely expected to trim rates by 25 basis points to 2.25% later in the day, with traders also pricing in a slim chance of a deeper half-point cut.
Fisher & Paykel Healthcare jumped 4.9% to emerge as the top gainer on the benchmark after posting a 39% rise in first-half net profit after tax. (Reporting by Kumar Tanishk in; Editing by Subhranshu Sahu)
