By Reuters

Copyright brecorder

Australian shares edged higher on Tuesday, as solid performances in commodity stocks offset losses in the financial sector, while investors remained cautious ahead of key unemployment data that could influence the Reserve Bank of Australia’s rate-cut policy.

The S&P/ASX 200 index was up 0.3% at 8,874.90 points, as of 0023 GMT.

The benchmark closed flat on Monday.

Markets in Sydney are betting that the RBA at its two-day meeting on September 29-30 will take a cautious approach to policy easing this year following a run of solid domestic data.

Swaps show minimal odds of an RBA cut this month, with what was once a near-certain move in November now priced at just 70%.

This places much of the focus on local jobs data due on Thursday, which has remained strong in recent months.

Australian heavyweight miners gained 1.4% to hit a two-week high after global copper prices touched a 15-month high on Monday, supported by a weaker dollar.

Index majors BHP, Rio Tinto and Fortescue gained between 1% and 1.6%.

Gold stocks rose 1.2% after bullion prices hit an all-time high, as a softer dollar made the greenback-priced precious metal more appealing to other currency holders.

Shares of Evolution Mining rose as much as 2.4%. Energy stocks advanced 0.6%, tracking higher oil prices.

Coal miner New Hope, a key contributor to the sub-index’s gains, jumped as much as 8.3%, its highest in seven months, despite reporting an 8% drop in annual profit. Financials capped broader gains with a 0.1% decline.

Investors are now awaiting the US Federal Reserve to deliver a widely expected 25-basis-point cut at the end of its two-day policy meeting on Wednesday, with the probability of such a move near 100%, according to CME’s FedWatch tool.

New Zealand’s S&P/NZX 50 index traded flat at 13,218.22 points, with focus on GDP data on Thursday that is likely to show a 0.3% quarterly contraction, reinforcing expectations for two more rate cuts by early next year.