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Energy stocks slip for fifth day in a row
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U.S. Federal Reserve rates decision later in the day
(Updates to close)
By John Biju
Feb 1 (Reuters) - Australian shares rebounded on
Wednesday helped by miners, although a drop in energy stocks
limited gains, while investors awaited a slew of central bank
policy decisions including the U.S. Federal Reserve later in the
day.
The S&P/ASX 200 index closed up 0.3% at 7,501.7, after hitting its highest since April 22 earlier in the session. The benchmark, which ended 0.1% lower on Tuesday, recorded its best January performance since the index was launched in April 2000.
Investors are eagerly awaiting the Fed's decision, where it is expected to deliver a 25 basis point (bp) hike, for hints at an end to the tightening cycle. This could also set the tone for Reserve Bank of Australia's (RBA) policy meeting next week.
"Inflation has not yet peaked in Australia, and I suspect the RBA will eventually have to hike above 4%...whilst inflation in Australia is comfortably above 7% and trending higher," City Index senior market analyst Matt Simpson said.
Mining stocks rose 0.7%, after top iron ore consumer China's data showed factory activity in January contracted at a slower pace.
China's PMI data "is certainly helping miners...showing improvement for new orders in manufacturing, construction and services," eToro market analyst Josh Gilbert said.
Mining gaints BHP Group , Rio Tinto and Fortescue Metals Group rose between 0.3% and 1%. However, the energy index fell 1.2%, slipping for the fifth session in row, with Santos Ltd and Woodside Petroleum falling 1% and 1.4%, respectively.
Financial stocks were flat, with lender ANZ Group up 0.8%. Westpac Banking Corp dipped 0.5%. Technology stocks ended 0.4% lower, with top loser Megaport Ltd extending losses after missing analyst estimates on Tuesday. Gold stocks shed 0.4%, with bullion prices trading in a narrow range.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index rose 1% to close at 12,090.93. (Reporting by John Biju in Bengaluru; Editing by Rashmi Aich)
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