Australian shares notch record close, led by miners and rising rate cut hopes
Australian shares finished at a new all-time high on Wednesday, driven by a broad-based rally led by miners, as sluggish retail sales fuelled expectations of an interest rate cut next week and boosted risk appetite.
The S&P/ASX 200 index gained 0.7% to end at a record close of 8 597.70 points, although volumes were the lowest since early January as investors awaited the US tariffs deadline and the full-year earnings cycle next month.
Mining stocks advanced 1.6% to finish at a two-week high. Sector giants BHP and Rio Tinto rose 1.7% and 2.1%, respectively.
The sub-index has been a drag on the benchmark this year as uncertainty over US-China trade relations weighed on domestic miners, which rely on exports to top iron-ore consumer China.
However, resilient Chinese economic data and hopes of a tariff deal between the world's top two economies are stoking a "risk-on" move for big miners, said Damian Rooney, institutional sales director at Argonaut.
Retail sales data showed minimal growth for a fourth straight month in May, strengthening the case for an interest rate cut next week. All Big Four banks now expect a quarter-point reduction on Tuesday, after ANZ brought forward its rate cut call to July.
Real estate stocks .AXRE added 1.8% to scale a three-week high, while consumer staples gained 0.6% in their third straight session in green.
Banks reversed early losses to close unchanged, with top lender Commonwealth Bank of Australia CBA.AX also reversing course to finish 0.6% in green.
Separately, Domino's Pizza Enterprises declined 15.8% to its lowest in more than 11 years after it announced the departure of its CEO Mark van Dyck, later this year.
New Zealand's benchmark S&P/NZX 50 index finished 0.4% higher at 12 784.29 points, its highest close since mid-May.
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