Australian shares rise on rate cut hopes, US trade deal optimism
The S&P/ASX 200 index rose 0.2% to 8,557.1 points by 0101 GMT after gaining 4.4% in the first six months of the year.
Investors are nearly certain the Reserve Bank of Australia (RBA) will cut rates next week, with swaps pricing in a 92% chance of a reduction from the current 3.85% cash rate, following signs of easing inflation in May.
Markets are awaiting the retail sales data for May on Wednesday after a weak reading in April raised concerns about consumer spending. Rate sensitive real-estate stocks climbed 0.9%.
Local property prices scaled another peak in June as rate cuts and expectations of more to come boosted demand in the face of low housing supply, data showed.
Financials eased 0.1%, but remained near record highs, weighed by a 1.6% drop in Commonwealth Bank of Australia.
Meanwhile, US trade deals with China and the UK fuelled optimism that a full-blown global trade war can be averted, with investors hoping for more deals ahead of US President Donald Trump's July 9 deadline.
Tech stocks gained 0.9%, tracking an overnight rally on Wall Street, where the S&P 500 and Nasdaq notched record closing highs. Gold stocks climbed 1.4% after bullion prices rose overnight as the dollar eased.
Australian shares head for sixth straight half-yearly rise
Evolution Mining and Northern Star Resources advanced 1.4% and 1.5%, respectively.
Insignia Financial jumped as much as 11.3% to become the top gainer on the benchmark index, after announcing investment manager CC Capital is actively working toward a binding takeover offer.
New Zealand's benchmark S&P/NZX 50 index rose 0.3% to 12,634.83 points.
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