Australian shares advanced on Wednesday, buoyed by gains in gold and oil stocks on firmer commodity prices, while investors awaited a critical inflation report expected to guide the central bank’s next monetary policy decision.
The S&P/ASX 200 index rose 0.4% to 8,976.40 by 2335 GMT and is set for its fourth consecutive session of gains.
The benchmark advanced 0.9% to hit a three-month high on Tuesday.
A robust jobs report last week has sharpened expectations of an early interest-rate hike, placing added weight on consumer price data, due later in the day, to gauge the Reserve Bank of Australia’s (RBA) policy path.
Markets are focused on the December-quarter trimmed-mean inflation, expected to rise 0.8%, which would lift the annual rate to 3.3%, above the RBA’s 2%-3% target band.
An increase of 0.7% or less would temper the odds of a rate hike at the RBA’s February 3 meeting, while a 0.9% or higher print would sharply swing the chances toward tightening, leaving a 0.8% increase to go down to the wire.
Traders are pricing in a near 60% chance of a quarter-point rise to the cash rate next week, with positions set to shift on the inflation print.
Energy firms leapt 1.4% to hit their highest since September 3 after oil futures surged.
Woodside Energy rose 1.8% after the oil giant’s $3.04 billion quarterly revenue topped Visible Alpha’s $2.84 billion estimate.
Gold stocks rose 1% after the bullion jumped to a record peak. Sub-index heavyweight Northern Star Resources climbed as much as 2.5%.
Miners jumped 1.3% to a second straight session of record high.
Mining giants BHP, Rio Tinto and Fortescue rose between 0.4% and 1.5%.
Financials edged up 0.2%, with top lender Commonwealth Bank of Australia advancing 0.4%.
Meanwhile, New Zealand’s benchmark S&P/NZX 50 index inched down 0.1% to 13,499.23.
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