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Technology stocks hit over 4-month high
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RBA policy decision due on Tuesday
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NZ50 closes at highest since March 22
(Updates to close)
By John Biju
Feb 2 (Reuters) - Australian shares rose to a more than
nine-month closing high on Thursday, helped by gains in gold and
tech stocks, after Federal Reserve Chair Jerome Powell's comment
raised hopes that the U.S. central bank would soon end its
interest rate-hike spree.
The S&P/ASX 200 index settled 0.13% higher at
7,511.60, its highest close since April 21.
The Fed delivered an expected 25 basis-point rate increase
after a year of larger hikes and said it had turned a key corner
in the fight against inflation. Markets saw Powell's comments on
the "disinflationary" process being underway as dovish.
Investors are now awaiting policy decisions from the Bank of
England and the European Central Bank later in the day and from
the Reserve Bank of Australia on Tuesday.
The Australian central bank is widely expected to deliver a
fourth consecutive quarter-point rate hike next week.
Nick Twidale, chief executive officer of APAC at FP Markets,
expects the RBA to be "relatively hawkish", considering weaker
retail sales data and relatively strong inflation.
Analysts at Citi believe risks are tilted to the hawkish
side with a "non-trivial likelihood of a 50 basis-point
increase", considering inflation remains above the central
bank's target. They now expect two more 25-bp rate hikes after
February to bring down inflation.
Gold stocks jumped 4.2%, with sector major Newcrest
Mining and Northern Star Resources gaining
3.7% and 4.6%, respectively.
Tech stocks rose 3.2%, hitting their highest since
September 2022. Heavyweights Xero Ltd and ASX-listed
shares of Block Inc gained 7.5% and 5.9%, respectively.
Miners slipped 0.4%, with Rio Tinto down
2.3%. Banks declined 0.4%, with the "big four" banks
down between 0.4% and 0.7%.
Energy stocks fell 0.9%, with Santos and
Woodside Energy losing 1.6% and 1.0%, respectively.
New Zealand's benchmark S&P/NZX 50 index rose 0.5%
to 12,152.16, its highest close since March 22.
(Reporting by John Biju in Bengaluru; Editing by Subhranshu
Sahu)
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