Australia shares jump on US inflation data reinforces rate-cut hopes

Goodman

16/05/2024 02:39

May 16 (Reuters) - Australian shares rose for a second
session on Thursday, pulled up by banks, tech and real estate
stocks as cooling U.S. inflation data reignited investors' hopes
for a September rate cut by the Federal Reserve, while investors
digested local fresh jobs data.
    The S&P/ASX 200 index  .AXJO  rose 1.6% to 7,879.5 by 0135
GMT. The benchmark ended 0.4% higher on Wednesday.
    April's U.S. consumer price index (CPI) data sparked hope
among investors that inflation was cooling and that the Fed
would lower its policy rate in September and December.
    Markets are now pricing in a 72.4% chance of the Fed cutting
interest rates in its September meeting, up from a 71.5% chance
a month ago, according to the CME FedWatch Tool.
        Meanwhile, data from the Australian Bureau of Statistics
showed that net employment rose by 38,500 in April, higher than
a Reuters poll of 23,700. 
        Back in Sydney, the rate-sensitive financials sub-index
 .AXFJ  gained 1.3% with the "Big Four" banks advancing between
1.1% and 1.6%. 
        Real estate stocks  .AXRE  gained 2.6%, with shares of
Charter Hall Group  CHC.AX  and Goodman Group  GMG.AX  rising
4.2% and 3.6% respectively. 
        Technology stocks tracked their overseas peers higher,
by advancing 2.4%. Shares of Xero  XRO.AX  and ASX-listed shares
of Block  SQ2.AX  rose 4.2% and 0.1%, respectively. 
    Healthcare sector  .AXHJ  gained 1.6% with shares of CSL
 CSL.AX  and Ramsay Health Care  RHC.AX  recording a rise of
1.3% and 0.8%, respectively.      
        Mining stocks  .AXMM  gained 0.9% on improving copper
prices. 
    Mining behemoths BHP Group  BHP.AX , Rio Tinto  RIO.AX  and
Fortescue  FMG.AX  added between 0.6% and 1%. 
    Among other sectors, gold stocks  .AXGD  rose 2.7%, with
shares of Northern Star Resources  NST.AX  up 3.4%.
        Across the Tasman Sea, New Zealand's benchmark S&P/NZX
50 index  .NZ50  rose 1.2% to 11,660.09 points.
    Shares of New Zealand dairy giant Fonterra Co-operative
 FCG.NZ  gained 4.2% on planning a full or partial sale of its
global consumer unit, its Fonterra Oceania unit and Sri Lankan
business.

 (Reporting by Roshan Thomas in Bengaluru; Editing by Janane
Venkatraman
)
 ((Roshan.Thomas@thomsonreuters.com))
 
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