Updated May 7th, 2024 at 08:04 IST

Australian stock market surge driven by commodity shares

Mining giants benefited from a rise in iron ore prices, with key stocks such as BHP Group witnessing a 1.1% increase.

Reported by: Business Desk
Stock market | Image:Reuters Breakingviews

Australian market: Australian stocks saw a rise on Tuesday, buoyed by gains in mining and energy sectors, supported by stronger commodity prices. The S&P/ASX 200 index climbed 0.6 per cent to reach 7,724.600 by 0040 GMT, building on a 0.7 per cent increase from the previous session.

Investors in Sydney are awaiting the Reserve Bank of Australia's (RBA) monetary policy decision, keen for insights into the central bank's stance on interest rates. With recent data dampening expectations for early rate cuts, analysts anticipate the RBA to maintain its cash rate, as indicated by a Reuters poll forecasting only one rate cut this year.


Mining giants benefited from a rise in iron ore prices, with key stocks such as BHP Group witnessing a 1.1 per cent increase.

However, the financial sector remained relatively stable ahead of the RBA decision, with major banks experiencing mixed fortunes. While two of the "Big Four" banks saw gains, National Australia Bank and ANZ Group faced declines following the latter's report of a 7 per cent drop in half-yearly cash profit.


Energy stocks edged up by 0.6 per cent amid steadier global oil prices, despite geopolitical tensions surrounding Israel's rejection of a ceasefire proposal.

Healthcare and utilities sectors also posted gains, with CSL, Australia's priciest stock, rising by 0.8 per cent, and AGL Energy surging by as much as 6.8 per cent after raising its annual earnings outlook.


Meanwhile, information technology and real estate sectors tracked gains in their US counterparts, contributing to the overall positive sentiment in the market.

In New Zealand, the benchmark S&P/NZX 50 index traded flat, awaiting the country's upcoming monetary policy decision following the Reserve Bank of New Zealand's decision to maintain its cash rate at 5.5 per cent in its last meeting.


(With Reuters inputs)


Published May 7th, 2024 at 08:04 IST