Australian shares snapped a three-day slide on Friday in broad-based buying led by commodity and banking stocks, as a downward revision to the first-quarter US economic growth raised hopes of at least one rate cut by the Federal Reserve this year.
The S&P/ASX 200 index was up 0.6% at 7,677.1 as of 0109 GMT.
The benchmark was, however, set to post its second consecutive weekly decline. Data showed that the US economy grew more slowly in the first quarter than previously estimated, as consumer spending fell, bolstering market expectations for a Fed rate cut in September.
The data helped calm investors’ nerves back in Sydney after Australian inflation and retail sales data released earlier in the week fanned fears that interest rates would not be lowered any time soon.
Markets are now awaiting the US Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred measure of inflation, due later in the day.
In Sydney, heavyweight financial stocks gained 0.5%, with all the “Big Four” banks trading up between 0.4% and 0.8%.
Miners gained 0.5%, with Rio Tinto and BHP up 0.6% and 0.1%, respectively.
Gold stocks advanced 2%, tracking a rebound in bullion prices in the previous session as the US dollar weakened on the gross domestic product data.
Energy stocks rose after a seven-session losing streak, trading 0.8% higher.
Australian shares hit record high; RBA cautious on inflation
Healthcare stocks gained 1%.
Telix Pharmaceuticals jumped as much as 10.8% to hit a record high after announcing positive data from a clinical trial.
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