Australian shares end higher on financials, gold boost; inflation data in focus

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28/11/2023 06:12

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      Gold stocks log highest close since Oct 20
    

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      Financial stocks post best day since Nov 9
    

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      Investors await inflation data due on Wednesday
    

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      NZ50 logs highest close since Nov. 15
    

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      RBNZ monetary policy decision on Nov. 29
    

  
 (Updates to close)
    By Adwitiya Srivastava
       Nov 28 (Reuters) - Australian shares ended higher on
Tuesday, lifted by gold miners and banks, after weak retail
sales data bolstered the case for a rate pause by the central
bank at its next policy meeting, even as investors await key
inflation report due later in the week. 
    The benchmark S&P/ASX 200  .AXJO  ended 0.4% higher at
7,015.20 points. The index closed 0.76% lower on Monday.
    Retail sales unexpectedly slipped in October as consumers
cut back on discretionary spending, helping the case for the
Reserve Bank of Australia (RBA) to keep its cash rate unchanged
on Dec. 5.
    "The clear weakness in the retail sector highlights the
ongoing squeeze on household budgets and supports the case for
the RBA to keep the cash rate on hold at its December meeting,"
analysts at ANZ wrote.
    Investor focus is expected to shift to inflation data due on
Wednesday.
    "CPI figure tomorrow is probably the most important of the
data in the next couple of weeks, but if we do see a weaker CPI,
it will leave the RBA with the option of leaving rates on hold,"
said Damian Rooney, director of equity sales, Argonaut. 
    A figure of around 5.2% or less would be taken positively by
the equity market, Rooney said.
    Rate-sensitive financials  .AXFJ  were the top boost in the
Australian benchmark index, advancing 0.6% to log their best day
since Nov. 9, with the 'Big Four' banks gaining between 0.7% and
1.2%.
    Gold stocks  .AXGD  ended 2% higher, logging their highest
close since Oct. 20 as bullion prices soared.  GOL/ 
    Shares of gold miner Evolution Mining  EVN.AX  closed nearly
3% higher.
    The New Zealand benchmark S&P/NZX 50 index  .NZ50  rose
0.73% to 11,237.38 points, its highest close since Nov. 15.
    Investors are anticipating the Reserve Bank of New Zealand's
monetary policy decision on Nov. 29, which could result in an
unchanged overnight cash rate, according to a Reuters poll.

    

 (Reporting by Adwitiya Srivastava in Bengaluru; additional
reporting by Aaditya GovindRao in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Adwitiya.Srivastava@thomsonreuters.com))
 
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