Australian shares log record closing high on lithium boost
The S&P/ASX 200 index rose 0.4 per cent to its highest close of 8,844.80. The benchmark gained 0.5 per cent earlier in the day to hit a record high of 8,852.30.
Mining stocks climbed to a 10-month peak in their sixth straight session of gains, with BHP and Rio Tinto advancing 1.6 per cent and 1.5 per cent respectively, as iron ore futures rose.
Lithium miners were the top gainers after battery giant Contemporary Amperex Technology Co said it had suspended production at a major lithium mine in China, which is capable of producing about 3 per cent of the world's total forecast output in 2025.
Pilbara Minerals was the biggest gainer on the main index, surging 19.7 per cent, while Liontown Resources, Mineral Resources and IGO rose between 8.6 per cent and 18.3 per cent.
'Any reduction of lithium supply on a global scale bodes well for our local producers like Pilbara, as there is currently an oversupply of the commodity, placing downward pressure on spot prices,' said Grady Wulff, senior market analyst at Bell Direct.
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Financials closed slightly higher, with Commonwealth Bank of Australia up 1.1 per cent, ahead of the Reserve Bank of Australia's policy meeting on Tuesday.
The central bank is expected to cut interest rates by 25 basis points, according to a Reuters poll.
Most major banks are scheduled to report their earnings this week, starting with CBA on Wednesday. The country's top lender is expected to report a rise in full-year cash profit, according to estimates.
Consumer discretionary stocks fell 1.6 per cent, eating into the overall gains. Energy stocks edged 0.4 per cent higher.
In New Zealand, the benchmark S&P/NZX 50 index ended 0.5 per cent higher at 12,911.86. REUTERS
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