Australian shares end higher on hopes of slower rate hikes

Image Source: ©2022 Kalkine Media®

(Updates to close)

By Navya Mittal

Nov 30 (Reuters) - Australian shares closed higher for a second straight session on Wednesday, with mining and energy stocks leading the advance, as easing inflation raised expectations for a slower pace of interest rate hikes.

The S&P/ASX 200 index ended 0.4% higher at 7,284.2. It rose 6.1% this month in its second consecutive monthly gain.

Data showed the monthly consumer price index (CPI) rose 6.9% in the year to October, slowing from 7.3% in September. Analysts had looked for a rise to 7.4% or higher in October.

"The surprisingly slower monthly CPI, combined with a month-on-month fall in October retail sales, could give the RBA (Reserve Bank of Australia) a reason to consider a 'pause' to hiking cycle," UBS analysts said in a note.

Miners climbed 1.6% on Wednesday to led gains on the benchmark after iron ore prices rallied overnight on fresh China support for its struggling property developers.

Sector majors BHP and Fortescue gained 1.6% and 0.1%, respectively. Rio Tinto added 2.2% as the miner unveiled a plan to invest a further $600 million in renewable energy assets in the iron ore-rich Pilbara region of Western Australia.

Energy stocks advanced 1.8% as crude oil prices rose over falling U.S crude inventories but weak China manufacturing data limited the gains.

Oil and gas major Woodside Energy and Santos added 0.6% and 0.4%, respectively.

In other news, Star Entertainment Group fell 0.4% as the country's financial crimes regulator began a civil lawsuit against its units, alleging non-compliance with anti-money laundering and counter-terrorism financing laws.

In New Zealand, the benchmark S&P/NZX 50 index closed 1.4% higher at 11,552.04. For the month, it gained about 1.9%. (Reporting By Navya Mittal in Bengaluru; Editing by Subhranshu Sahu)



 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and