(Updates share moves, adds details throughout after RBNZ’s rate decision and Australia’s inflation print)
Nov 26 (Reuters) – New Zealand shares pared some gains on Wednesday after the country’s central bank cut its benchmark cash rate in an expected move, but signalled the likely end to the easing cycle.
The S&P/NZX 50 was up 0.9% at 13,606.68 points, as of 0200 GMT. The index rose as much as 2% to a record high earlier in the session.
The Reserve Bank of New Zealand cut its benchmark official cash rate by 25 basis points to 2.25%. However, policymakers signalled the likely end to the easing cycle as the economy showed signs of picking up, prompting traders to sharply trim expectations for any further rate cuts.
In Australia, data showed that the monthly consumer price index (CPI) in October rose 3.8% from a year earlier, above median forecasts of 3.6%, reinforcing the case that the central bank’s policy easing cycle may have run its course.
The S&P/ASX 200 was last up 0.8% at 8,607.1 points.
Rate-sensitive financials gained 0.6%, with three of the “big four” banks, under pressure in recent weeks for frothy valuations, rising between 0.2% and 0.7%. Westpac fell 0.3%.
Heavyweight miners extended gains to a third session, rising 1%. 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 0.5% and 1.7%.
Real estate stocks advanced 0.7%, with property landlord Goodman Group jumping 1.8%.
Healthcare and consumer staples rose 1.8% and 1%, respectively. (Reporting by Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
