Australian shares close higher ahead of widely expected RBA rate hike

BHP

28/09/2026 07:28

Updates to close
Financials notch best session in over a week
Miners fall for third straight session
Northern Star leaps over 6% on rejecting takeover bid
By Kumar Tanishk
Sept 28 (Reuters) - Financials led broad gains in Australian shares on Monday as investors braced for a near-certain central bank rate hike due to come in a day later.
The benchmark S&P/ASX 200 index .AXJO rose 0.2% to 8,679.70 points after falling 0.4% on Friday. The benchmark remained nearly 1.6% below its 200-day moving average.
The Reserve Bank of Australia (RBA) is widely expected to hike rates by 25 basis points to 4.60% on Tuesday, a Reuters poll found. Swaps are pricing in about 40 basis points of further tightening after that. 0#AUDIRPR
A rate hike is largely baked into Australian equities, putting the spotlight on whether the RBA telegraphs further tightening or pivots to a more cautious, data-led tone, KCM Trade’s chief market analyst Tim Waterer said.
"Any hint of a more hawkish path could weigh on rate-sensitive sectors, while a measured message may help the market hold recent levels. A more hawkish-sounding RBA on Tuesday could quickly put a spanner in the works for equity momentum."
Leading gains, rate-sensitive financials .AXFJ rose 1.2%, posting their best session in about one and a half week, with the big four banks gaining between 0.5% and 1.6%.
Consumer staples .AXSJ climbed 0.8%, led by a 1% rise in country's top groccer Woolworths WOW.AX.
Healthcare stocks .AXHJ rose 1.5% to over a month high, while real estate firms .AXRE gained 0.5%.
Capping gains, miners fell for a third straight session slipping 1.5% as iron ore prices declined. Mining giants BHP  BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX fell between 0.7% and 1.5%. IRONORE/
Gold miners .AXGD dropped 1.6%, tracking weaker bullion prices. However, top gold miner Northern Star Resources NST.AX advanced 6.2% on rejecting a takeover proposal from South Africa's Gold Fields GFIJ.J.
Across the Tasman Sea, New Zealand's S&P/NZX 50 index .NZ50 rose 0.1% to 13,830.68 points.

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee)
 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))