Australian shares saw a mixed trading session on Tuesday, with miners and IT stocks driving gains while real estate stocks struggled to keep up. The S&P/ASX 200 index inched up by 0.2% to close at 7997.7, with the benchmark briefly crossing the 8,000 point level for the first time since early August. The market was influenced by a variety of factors, including rising iron ore prices, company earnings reports, and central bank minutes.
Miners were among the top performers of the day, with the heavyweight mining sector adding 1.1% overall. This increase was fueled by rising iron ore prices, which were supported by strength in steel prices. BHP Group, one of the largest mining companies in the world, saw its stock rise by as much as 1.5%. The resolution of a strike at Chile’s Escondida copper mine, which is operated by BHP, also contributed to the positive sentiment surrounding mining stocks.
On the other hand, real estate stocks struggled, with the sector losing 1.6% overall. Dexus, a prominent real estate firm, experienced its worst session in over four years after reporting a widened annual loss. This decline in real estate stocks offset some of the gains made by other sectors.
Financial stocks, particularly rate-sensitive ones, saw a modest increase of 0.3%. ANZ Group, one of Australia’s „Big Four“ banks, rose by 0.6% after reporting an increase in its loan book from the previous quarter. Health stocks also saw gains, with CSL, Australia’s priciest stock, rising by 0.2%.
IT stocks were among the top performers of the day, rising by 1.3% in line with their U.S. counterparts. This increase was driven by positive sentiment surrounding the tech sector as a whole.
Market participants closely analyzed the Reserve Bank of Australia’s minutes from its recent policy meeting, where it decided to keep its cash rate unchanged. The minutes were seen as balanced, with optimism about future economic growth and labor market conditions offsetting concerns about a potential late cycle rate hike.
In New Zealand, the benchmark S&P/NZX 50 index fell by 0.8% to close at 12558.08, reflecting the mixed sentiment seen in the broader market.
Overall, the Australian market’s performance was influenced by a variety of factors, with miners and IT stocks driving gains while real estate stocks struggled. The market will likely continue to be influenced by company earnings reports, economic data, and central bank decisions in the coming days.