Australian Shares Reach Fortnight Peak Boosted by Mining and Financial Sectors

Australian stock markets witnessed a notable lift on Monday, reaching a two-week high, propelled mainly by gains in the mining and financial sectors. Market participants are now keenly anticipating the release of local inflation data, which is expected to provide insights into potential interest rate adjustments by the Reserve Bank of Australia (RBA).

Rising Marks for the S&P/ASX 200 Index

The S&P/ASX 200 index observed a 0.7% rise, reaching 7,825.70 points early in the Greenwich Mean Time (GMT) trading hours. This upswing is on the heels of a solid 1.3% weekly increase reported the previous Friday. Investors are particularly focused on the upcoming consumer price index (CPI) data, slated for release on Wednesday, which could offer further direction on the RBA's interest rate path.

Market Reaction to Economic Indicators

Recent employment figures have shown a robust recovery in Australian job numbers during February, with unemployment rates dropping significantly and suggesting a persistently tight labor market. In response, mining shares saw upward momentum, rising by 1.3%, thanks to a surge in iron ore futures stemming from anticipated demand growth in China.

Notable miners such as Fortescue marked a high increase, climbing 5.2%, its peak since early March. Major mining players including Rio Tinto and BHP Group also saw shares rise by 1.4% and 1.1% respectively.

The financial sector, sensitive to rate changes, hit a high unseen since mid-March, advancing 0.8%. This hike included the 'Big Four' banks which recorded gains ranging from 0.3% to 1.1%.

Varied Performance Across Sectors

Energy sector stocks also experienced a jump, with a 1.2% increase. Santos, a prominent oil and gas firm, achieved a 1.5% rise, reaching its highest point since early February. Contrarily, the gold sector saw a downward movement, with a 1% decrease and leading gold miner Northern Star Resources experiencing a fall of up to 1.3%.

Meanwhile, technology stocks managed to hit a remarkable high, the likes of which had not been seen since late 2021, surging up to 1.5%.

Looking at neighboring markets, New Zealand's benchmark S&P/NZX 50 index also enjoyed gains, progressing 0.7% to a level of 12,056.85 points.

Australia, Shares, Miners