Banks, healthcare stocks lead Australia shares higher
Critical mineral miners rise on potential US defence funding
CPI data due on Wednesday
April 28 (Reuters) - Australian shares rose for the third consecutive session on Monday, driven by gains in heavyweight financials and healthcare stocks ahead of the country's quarterly inflation data later this week.
The S&P/ASX 200 benchmark index closed 0.4% higher at 7,9971 points, its highest level since late March. The benchmark rose nearly 2% last week.
The first-quarter inflation figures, due on Wednesday, are expected to fall marginally, building the case for an interest rate cut from the Reserve Bank of Australia (RBA) next month.
If the consensus call for quarterly core consumer price index (CPI) is realised then RBA is likely to cut rates on May 20, said Chris Weston, head of research at Pepperstone trading platform.
Banking stocks advanced 0.3%, with three of the "Big Four" banks rising between 0.8% and 1.7%. The country's largest lender, Commonwealth Bank of Australia, fell 1.1%, moving further away from the record high touched last week.
Healthcare stocks added 0.9%, with the most expensive stock CSL climbing as much as 1% to a more than two-week high.
Bucking the trend, mining declined 0.8% as iron ore futures slid on fears of top consumer China cutting steel output.
Mining giants BHP slipped 1.1% and Fortescue fell 0.3%, while Rio Tinto advanced 0.1%.
Meanwhile, Australian critical mineral miners such as Lynas Rare Earths, Delta Lithium and Sayona Mining , rose between 2.9% and 5.3% after news of significant funding from a potential $150 billion U.S. defence package.
Gold miners also retreated following a slump in bullion prices as easing U.S.-China trade tensions dented demand for safe-haven assets.
Among corporate news, shares of James Hardie rose 1.2%. The Australian Securities Exchange said it will review shareholder approval requirements for large corporate buyouts by listed companies, after investors questioned James Hardie's $8.75 billion deal for U.S. builder AZEK.
New Zealand's benchmark S&P/NZX 50 index ended 0.7% higher at 12,098.89 points.
(Reporting by Sneha Kumar in Bengaluru; Editing by Eileen Soreng)
First Published: 28 Apr 2025, 12:24 PM IST
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