Financials, tech stocks nudge Aussie shares near record high

New Straits Times

18 hours ago

SYDNEY: Australian shares moved closer to a record high on Friday, boosted by technology and financial stocks ahead of an expected interest rate cut by the local central bank next week, though losses in commodity stocks capped gains.
The S&P/ASX 200 index rose 0.2 per cent to 8,611.50 points by 0047 GMT, just 27.6 points shy of the record high hit on June 11. The benchmark has gained more than 1 per cent so far this week and is headed for its best week since mid-May.
The Reserve Bank of Australia (RBA) is expected to cut rates on Tuesday, a Reuters poll of economists showed.
Markets and economists had earlier forecast three RBA rate cuts this year but raised their projections to four in May and now to five, as inflation eased faster than expected and the growth outlook weakened.
While lower borrowing costs typically pressure bank margins, they could support the broader economy by spurring growth and potentially drive up both loan demand and volumes.
Financials rose 0.4 per cent, recovering from a more than 1 per cent drop on Thursday.
National Australia Bank and Westpac rose 0.2 per cent and 0.4 per cent, respectively.
Rate-sensitive real estate stocks climbed as much as 1 per cent to a three-week high. Scentre Group and Goodman Group gained more than 1 per cent each.
Technology stocks added 1.4 per cent, taking cues from the S&P 500 and Nasdaq, which notched record closes overnight. Shares of Xero advanced 0.9 per cent.
Bucking the trend, heavyweight miners lost 1.3 per cent after rising more than 3 per cent on Thursday.
BHP Group and Rio Tinto shed 2 per cent and 2.3 per cent, respectively.
Gold stocks eased 0.2 per cent after bullion prices declined 1 per cent overnight. Oil stocks followed suit, dropping 0.2 per cent.
New Zealand's benchmark S&P/NZX 50 index added 0.5 per cent to 12,770.55 points.