Australian shares eke out gains as miners override bank weakness

Northern Star Resources

26/10/2026 07:08

Updates to close
Miners snap a four-day losing streak
Gold stocks break five-day losing streak
Australia's September-quarter inflation data due this week
By Aamir Khalid
Oct 26 (Reuters) - Australian shares eked out gains after falling earlier on Monday as miners rose to override weakness in banks ahead of a key inflation report later this week that could steer the central bank's next move.
The benchmark S&P/ASX 200 index .AXJO ended 0.2% higher at 8,809.90 points. It earlier lost as much as 0.8%.
"Banks are losing some of last week's defensive shine...Investors appear to be taking profits and shifting attention towards previously battered sectors," said Hebe Chen, market analyst at Vantage Markets.
Financials .AXFJ slipped 0.5%, with the "Big Four" banks losing between 0.3% and 0.8%. 
The Reserve Bank of Australia is set to deliver its policy decision on November 3.
Mining stocks .AXMM surged nearly 2% to snap a four-day losing streak after slumping more than 8% last week. 
"The recovery reflects renewed bargain hunting following last week's heavy sell-off, alongside improving short-term risk appetite," added Chen.
Heavyweight BHP BHP.AX rose 1%, while Rio Tinto RIO.AX added about 0.2%.   
Local gold stocks .AXGD jumped 2.9% and snapped a five-day losing streak. Northern Star Resources NST.AX rose 2.8%. 
INFLATION WATCH
The RBA raised its cash rate to a 15-year high in September, marking its fourth hike of the year as inflation remains a sore point.
Investors now await the September-quarter inflation data, where further pressure on prices could impact the central bank's rate decision. 
Markets imply a 65.5% chance that the central bank will raise rates versus a 34.5% chance of a hold next week. 0#AUDIRPR
Meanwhile, data-centre operator Nextdc NXT.AX fell 1.3% after its chief Craig Scroggie said he would forgo his fiscal 2027 bonus opportunities, days after the company cut its revenue outlook and paused future expansion projects.
The New Zealand benchmark S&P/NZX 50 index .NZ50 was closed for a public holiday ahead of its central bank meeting this week.

(Reporting by Aamir Sheik Khalid in Bengaluru; editing by Harikrishnan Nair)
((Aamir.SheikKhalid@thomsonreuters.com;))