Commodity stocks push Australian shares higher ahead of GDP data

Harvey Norman Holdings

28/02/2023 06:52

* 
      ASX 200 fell 2.9% in Feb
    

        * 
      Miners lead gains on the bourse
    

        * 
      Harvey Norman top laggard on ASX after HY profit slumps
    

  
 (Updates to close)
    By Echha Jain
       Feb 28 (Reuters) - Australian shares closed higher on
Tuesday, with commodity stocks leading gains as economic data
showed the pulse of Australian consumer slowing amid rising
inflation and sustained rate hikes while the focus shifts to the
country's GDP data.
    The S&P/ASX 200 index  .AXJO  ended 0.5% up at 7,258.40, in
line with global markets. For the month, the index shed 2.9%.
    Data from the Australian Bureau of Statistics earlier in the
day showed retail sales rebounded in January, though the
underlining pace was slowing.
    Even though the retail sales data shows some consumer
resilience, sales are slowing down, indicating that the Reserve
Bank of Australia's rate hikes are having their desire effects,
said Josh Gilbert, market analyst at eToro.
    Investors would focus on quarterly GDP data due on Wednesday
for further clues on RBA's stance on rate hikes. 
    Analysts are expecting the economy to grow 0.7% in the
December quarter, and 2.7% for the year, according to a Reuters
Poll.
    "This reading now throws the ball back into the RBA’s court,
with the economy starting to weaken but inflation still elevated
heading into next week’s rate decision. The Reserve Bank may
still decide to raise rates, but the peak of this cycle is in
touching distance," eToro's Gilbert said. 
    Local miners  .AXMM  advanced 1.7% with heavyweights Rio
Tinto  RIO.AX , BHP Group  BHP.AX  and Fortescue Metals Group
 FMG.AX  adding between 1.1% and 2.8%.
    Gold stocks  .AXGD  added 1.8% as sector-major Northern Star
Resources  NST.AX  rose 2%.
    Energy stocks  .AXEJ  climbed 1.5% on strong oil prices as
hopes of a solid economic rebound in China drove up fuel demand.
 O/R 
    Santos  STO.AX  and Woodside Energy  WDS.AX  added 1.6% and
2.2%, respectively.
    In other news, the country's top electronics retailer Harvey
Norman Holdings  HVN.AX  fell 7.5%, topping the laggards on the
bourse after reporting a 15% slump in half-year profit.
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  closed 0.9%
higher at 11,894.58 points.

 (Reporting by Echha Jain in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((Echha.Jain@thomsonreuters.com;))
 
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