Australian shares held in a tight range on Tuesday as investors
awaited a key central bank policy decision due later in the day,
with strong U.S. jobs data indicating interest rates could stay
high for longer also weighing on sentiment.
The S&P/ASX 200 index inched 0.1% higher to 7,548.30
, as of 0041 GMT, after a 0.3% dip on Monday.
The Reserve Bank of Australia (RBA) is widely expected to
deliver a fourth consecutive quarter-point interest rate hike
later in the day, likely followed by another similar-sized
increase in March, a Reuters poll showed.
Analysts at ANZ Group said they expected the
central bank to consider a 50-basis point hike, but "early signs
of a slowdown in consumer spending and a softening in business
conditions should be enough for the RBA to stick to 25 bps."
Investor are also keenly watching the U.S. Federal Reserve's
next moves as its view of interest rates staying above 5% into
next year is in direct opposition to market position so far over
rate cuts later this year. In Australia, export-reliant miners fell 0.5% as
iron ore prices remained volatile after traders tempered China
demand optimism. Iron ore behemoths BHP Group , Rio Tinto and Fortescue Metals Group slumped between 0.7% and
1.4%.
Banks rose 0.4%, boosted by a 2.2% gain in financial
conglomerate Macquarie Group on an uptick in
year-to-date net profit after tax. The "big four" banks traded
in positive territory.
Energy stocks gained 1.1% after oil prices edged
higher in choppy trading. New Zealand's benchmark S&P/NZX 50 index fell 0.5%
to 12,129.35.
(Reporting by Nausheen Thusoo in Bengaluru; Editing by
Subhranshu Sahu)
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