Sept 25 (Reuters) – Australian shares were little changed on Thursday as gains in mining stocks were countered by losses in gold miners and banks, while investors dialled back expectations of near-term policy easing after a hotter-than-expected domestic inflation report.
The S&P/ASX 200 index was flat at 8,764.40, as of 0022 GMT. The benchmark ended 0.9% lower on Wednesday.
Miners were on the rise and advanced 1.4% after U.S.-listed Freeport-McMoran declared force majeure at its Grasberg mining complex in Indonesia, sending copper prices to a 15-month peak overnight.
BHP and Rio Tinto gained 2% each, making them among the top gainers on the benchmark.
Energy stocks added 0.4%, as oil prices climbed on a surprise drop in U.S. crude inventories. Sector majors Woodside Energy and Santos gained 1.1% and 0.3% respectively.
Data from the Australian Bureau of Statistics on Wednesday showed the monthly consumer price index rose 3.0% in August from a year earlier and up from 2.8% in July.
The data came in just above median forecasts of 2.9%, suggesting some upside to inflation that prompted markets to pare back the chances of imminent policy easing.
Swaps now indicate a 6.5% possibility of a quarter-point cash rate cut at the central bank’s meeting next week, with a 38.2% probability of a cut at its subsequent meeting in November.
Offsetting gains, heavily-weighted financials fell 0.2%, with top lender Commonwealth Bank of Australia declining 0.3%.
Lower interest rates typically aid the mortgage-paying capacity of borrowers, thus boosting lending volumes for banks.
Gold miners lost 0.9% as bullion prices retreated from a record high overnight. Index leaders Northern Star Resources and Evolution Mining lost 1.8% and 1.1% respectively.
Healthcare stocks also slipped 0.8%, with biotech major CSL declining 0.7%.
In New Zealand, the benchmark S&P/NZX 50 index was unchanged at 13,175.32. (Reporting by Nikita Maria Jino in Bengaluru; Editing by Rashmi Aich)
