Australian shares rise to 8-week high after weak US inflation data – Markets ReadingS


Australian shares hit an eight-week high on Wednesday, boosted by gains in mining and financial stocks as falling US inflation data increased bets that the Fed would not consider raising interest rates for now.

The S&P/ASX 200 index rose 1.5% to 7,110.1 by 2359 GMT, its highest level since September 21.

The indicator was also on track for its biggest daily rise since July 13.

Bets on a rate pause increased after Tuesday’s data showed US consumer prices were unchanged in October and headline inflation showed its lowest annual increase in two years.

In Australia, data showed the third quarter wage price index (seasonally adjusted) rose 4% year on year; This figure was expected by a Reuters Poll of 3.9% increase.

Gold stocks rose 3.6%, the biggest intraday rise since January 4. Northern Star Resources was up 3.9% and Evolution Mining was up 4.6%. Newmont Corp’s ASX-listed shares rose 3.5%.

Miners also rose 2.7% to a 2-month high, gaining strength from rising iron ore prices as incentive measures for China’s steel-heavy real estate sector raised the demand outlook. Rio Tinto rose 3% and BHP Group rose 2.1%.

Rate-sensitive financial stocks continued their gains, gaining 0.9% and poised for their sharpest rise since November 3.

Australian shares rise on broad-based gains; CBA inch higher

The “big four” banks recorded an increase between 0.7% and 1.2%.

Meanwhile, energy stocks bucked the trend, falling 0.6%, as oil prices pared gains on signs that tensions in the Middle East may be easing and uncertainty about U.S. oil stocks.

Heavyweights Santos lost 1.1% and Woodside Energy lost 0.3%.

Leading gainer on the benchmark, Centuria Capital Group, rose 1.5% after the specialist investment manager secured A$500 million (US$324.70 million) in corporate industry financing.

New Zealand’s benchmark S&P/NZX 50 index rose 1.4 percent to 11,333.16.

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