Copyright brecorder
Australian shares rose on Monday after signs of easing US-China trade tensions buoyed risk sentiment globally, while investors’ caution ahead of key domestic inflation data that could challenge bets for a near-term rate cut capped gains. The S&P/ASX 200 index rose 0.41% to 9,055.60 points, led by gains in financials and miners - the two most heavily-weighted sectors on the benchmark. China is Australia’s largest trading partner and a key buyer of iron ore, coal and other commodities, making its economic ties critical to the resource-heavy bourse. Globally, investors are optimistic that the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping could pave the way for a trade deal, with both sides signaling progress. A meeting between Australian Prime Minister Anthony Albanese and Chinese Premier Li Qiang over the weekend, where both leaders pledged deeper cooperation despite recent military tensions, helped reinforce investor confidence. Financials advanced 0.7%, with the “Big Four” banks gaining more than 0.6% each. A crucial reading on third-quarter consumer prices due on Wednesday could determine whether a November rate cut is on the table, with markets pricing in a 60% chance. Luke Winchester, portfolio manager at Merewether Capital, said banks’ strength reflected a mix of catch-up buying after months of underperformance, their safe-haven appeal amid global uncertainty, and optimism that potential rate cuts could spur mortgage lending, even as margin pressures linger. Miners rose 0.4% on gains in iron ore prices, bolstered by easing trade tensions, outweighed lingering concerns over demand from top consumer China. BHP and Rio Tinto were up 0.7% and 1.3%, respectively. Energy stocks advanced 0.8% as oil prices climbed. Sector heavyweight Woodside Energy gained 1.2%, while smaller rival Santos was up 1.4%. New Zealand’s benchmark S&P/NZX 50 index rose 0.108%to close at 13,391.59 points.
