Australian shares rise as strong commodities lift miners; NZ inflation in focus

Insignia Financial

20/01/2025 24:12

Jan 20 (Reuters) - Australian shares climbed on Monday,
with miners lifting the benchmark on the back of strong
commodity prices, while diversified miner South32  S32.AX  rose
to its highest in more than a month after beating estimates for
second-quarter output.
    The S&P/ASX 200 index  .AXJO  was up 0.3% at 8,331.2 points,
as of 2334 GMT. The benchmark closed 0.2% lower on Friday.
    Investors in Australia will keenly monitor local inflation
data, which is due next week, to gauge the central bank's
interest rate trajectory.
    The Reserve Bank of Australia (RBA) uses inflation data as a
key factor in determining its stance on interest rates. The
easing of core inflation in November has fuelled expectations
for a potential rate cut in February.
    Markets are still pricing in a 73% chance of a reduction of
25 basis points next month, according to the RBA watch tool.
    Local miners  .AXMM  led gains on the benchmark, with a 0.6%
jump, as iron ore prices strengthened after a raft of
better-than-expected data from top consumer China.  IRONORE/ 
    Shares of South32 rose as much as 1.7% to their highest
since Dec. 11, as the diversified miner beat Visible Alpha
consensus estimates to log a second-quarter manganese production
of 1.1 million wet metric ton (wmt).
    Separately, mining giants Rio Tinto  RIO.AX , BHP Group
 BHP.AX  and Fortescue  FMG.AX  advanced between 0.7% and 2.1%.
    Domestic financials  .AXFJ  posted modest gains,
contributing to ASX 200's climb, with the "Big Four" banks each
nudging 0.1% higher.
    Shares of Insignia Financial  IFL.AX  climbed as much as
1.6%, reaching a three-year high, after the company offered to
provide CC Capital with access to "non-public, non-exclusive
information" to help assess whether the U.S.-based suitor could
submit a "further improved proposal".
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  slipped
0.5% to 13,059.09 points.
    Traders in New Zealand are awaiting the release of local
inflation data for the fourth quarter later this week.
    
        
             

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((shivangi.lahiri@thomsonreuters.com))
 
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