Australian Shares Surge as Investors Await Inflation Data

Australian equities experienced an upswing on Monday, fueled by gains across most sectors, with financial stocks leading the charge. Market participants are keenly awaiting the release of local inflation figures later in the week.

The S&P/ASX 200 index jumped by 0.9% to reach 8,039.5 points by 0101 GMT, surpassing the 8,000 threshold for the first time in over seven weeks.

The benchmark index had previously closed 0.6% higher on Thursday, preceding the ANZAC Day holiday.

Economic Outlook and Interest Rate Expectations

Domestically, investors are focusing on the upcoming inflation data, scheduled for release on April 30, to evaluate the economic landscape and assess the possible consequences of ongoing international tariffs and trade disputes on the nation.

This data will serve as a crucial factor for the Reserve Bank of Australia (RBA) when they convene to decide on interest rates at their policy meeting on May 19.

According to the RBA Rate Tracker, as of April 25, a significant 62% of surveyed market participants had factored in a potential cash rate reduction to 3.60%. The current rate stands at 4.10%.

Financial Sector Leads the Gains

Financial institutions sensitive to rate changes saw a rise of approximately 1.3%, reaching their highest level since March 3. The sub-index is on track for its eighth consecutive session of gains.

The “Big Four” banks each saw increases ranging from 0.7% to 1.6%.

Other Key Sectors
  • Energy stocks climbed 1.2%, mirroring the broader market’s performance, with Woodside Energy, a key player in the sector, rising by 1.3%, and its smaller competitor, Santos, trading 1.9% higher.
  • Technology stocks advanced 2.3%, marking their highest point since March 27, following the upward trend observed on Wall Street last week.
  • However, mining companies experienced a slight downturn of 0.5% as iron ore futures weakened due to uncertainties surrounding trade tensions.

Lynas Rare Earths, a prominent rare earth miner outside of China, saw its shares increase by over 3%, despite not meeting market expectations for its third-quarter sales revenue.

Among individual stocks, James Hardie Industries experienced a gain of more than 2.4% after announcing it would hold a shareholder vote before implementing any modifications to its Australia listing status.

New Zealand’s S&P/NZX 50 index also saw positive movement, rising by 0.8% to reach 12,110.45 points.