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AXMM sees best day since Jan 6
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AXGD jumps the most since Feb 2
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AXFJ hits lowest since Jan 10
(Updates to close)
By Echha Jain
March 1 (Reuters) - Australian shares flitted in and out
of negative territory on Wednesday, but turned steady on market
close after data showed inflation accelerated less than expected
in January, even as investors assessed lacklustre fourth-quarter
economic growth.
The S&P/ASX 200 index held its ground at 7,251.60 after slipping 0.2% at open. The index closed 0.5% higher on Tuesday. Consumer prices rose 7.4% in January, below December inflation level of 8.4% and market forecasts of 8%, a sign that inflation in Australia might be past its peak. Still, data also showed that Australia's economy grew at the weakest pace in a year last quarter as strength in trade was offset by rising interest rates and high inflation, with indications of a further slowdown. "It's likely that the Reserve Bank of Australia's aggressive tightening is playing a significant role in cooling inflation but at the same time denting the economy," said Glenn Yin, head of research and analysis, AETOS Capital Group. "This has also stirred up sentiment in the financial sector as investors are cautiously pricing in a lower terminal rate, which will put a lid on banks' interest margins," added Yin. Investors are likely to shift focus to the RBA's interest rate decision due next week, where a fifth consecutive quarter-point rate hike is widely expected, according to a Reuters poll. Financials slumped 1.2% to their lowest levels since Jan. 10, with all the "Big Four" banks trading in red.
On the other hand, miners jumped 2.5%, with heavyweights BHP Group , Rio Tinto and Fortescue Metals Group adding between 2.3% and 3.4%. Gold stocks advanced 3.4% as bullion prices edged higher on a weaker greenback. Newcrest Mining and Northern Star Resources jumped 3.7% and 2.8%, respectively. Energy stocks tracked oil prices higher to gain 1.6%. Santos and Woodside Energy added 0.9% and 2.5%, respectively. New Zealand's benchmark S&P/NZX 50 index fell 0.2% to finish the session at 11,876.35.
(Reporting by Echha Jain in Bengaluru; Editing by Sherry Jacob-Phillips)
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