Stock prices in Australia went up on Friday, marking three straight weeks of increases. This rise was supported by banks and retail stores as everyone awaits new information about inflation due next week. The S&P/ASX 200 index, a key measure of shares, finished the day 0.4% higher at 8,408.9 points. This week, it has gone up 1.2%, making it the best week in a month, and it has gained nearly 2% over the past three weeks.
Traders are excited about upcoming inflation reports, which they hope will push Australia’s central bank, the Reserve Bank of Australia (RBA), to lower interest rates to 4.10% in February. There’s a 78% chance this will happen. Jessica Amir, a market expert from Moomoo, mentioned that the inflation estimates look better, meaning it could be closer to the target than expected. This might encourage the RBA to cut rates.
Because of this, shares of major banks rose by 0.3%. Three of the biggest banks increased their stock prices between 0.1% and 0.7%, while ANZ stayed the same. If rates go down, people might spend more money, which is good news for stores. Retail stocks jumped by 2.1%, with Wesfarmers, a big company, increasing by 3.6%.
Miner companies were initially down but ended the day up by 0.1% as iron ore prices rose. Market mood brightened after U.S. President Donald Trump mentioned that his chat with Chinese President Xi Jinping was friendly and that they could reach a trade deal. Companies like BHP, Rio Tinto, and Fortescue ended on a positive note.
However, gold stocks dipped by 1%, continuing losses from Thursday, even though gold prices hit a nearly three-month high.
In New Zealand, the S&P/NZX 50 index slipped by 0.3% to 13,024.7 points. But Synlait Milk stood out, soaring over 19% to a five-month high as it plans to be profitable by 2025.
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