Australian stocks surged to their loftiest points in a fortnight on Monday, propelled by robust performances in key financial and mining sectors, as investors remained attentive to forthcoming local inflation figures that could shed light on the central bank’s stance on interest rates.
The S&P/ASX 200 index climbed by 0.7% to reach 7,825.70 points as of 0029 GMT, extending its weekly gain of 1.3% recorded on Friday.
Market participants eagerly anticipate the release of the consumer price index (CPI) data scheduled for Wednesday, especially after the Reserve Bank of Australia (RBA) opted to keep its interest rates unchanged last week, abandoning its previous inclination towards tightening.
Last week’s employment data demonstrated a significant rebound in Australian employment figures for February, with the unemployment rate falling well below projections, indicating persistent tightness in the labor market.
Mining equities flourished on Monday, rallying by as much as 1.3%, buoyed by the surge in iron ore futures amid expectations of heightened demand from China.
Fortescue witnessed an impressive surge of 5.2%, reaching its peak since March 8. Similarly, Rio Tinto and BHP Group experienced gains of up to 1.4% and 1.1%, respectively.
Australian shares joined their global counterparts in an upward trajectory, with tech stocks spearheading the rally, surging by as much as 1.5% to attain their highest levels since November 22, 2021.
Financial stocks, sensitive to interest rate movements, ascended by as much as 0.8%, reaching their zenith since March 12.
The “Big Four” banks recorded gains ranging from 0.3% to 1.1%, while energy stocks also advanced, with increases of up to 1.2%. Santos, an oil and gas firm, saw its shares climb by as much as 1.5% to reach their highest levels since February 7.
In contrast, gold stocks experienced a downturn, declining by as much as 1%, with leading gold miner Northern Star Resources witnessing a drop of 1.3%.
Meanwhile, across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index also experienced an upward trajectory, rising by 0.7% to 12,056.85 points.
