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Feb inflation slows to eight-month low
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Miners lift benchmark most
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Banks fall on UBS downgrade
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NZ's Sky Network to cut around 170 jobs
(Updates to close)
By Poonam Behura
March 29 (Reuters) - Australian shares recovered lost
ground from earlier in the session to finish higher on
Wednesday, as a slowdown in February inflation growth
strengthened the case for the central bank to pause its rate
hike cycle next week.
The S&P/ASX 200 index ended 0.2% higher at 7,050.3
points. The benchmark closed 1% higher on Tuesday.
Traders in Sydney are hoping for a pause by the Reserve Bank
of Australia (RBA) in their policy meeting on April 4, as recent
data indicates that 10 consecutive rate hikes - a cumulative 350
basis points - since May last year have begun to take effect.
Inflation slowed to an eight-month low in February, while
retail sales levelled off after wild swings around the year-end
holidays, both indicating that rising borrowing costs are
starting to pinch consumers.
"A rate pause next week is a done deal, and the RBA will
jump at the chance to pause following a record streak of hikes,
political heat and unfavourable headlines towards some of the
central bank's members," said Matt Simpson, senior market
analyst at City Index.
Among local movers, the heavyweight mining index advanced 1.2%, with iron ore majors Rio Tinto ,
Fortescue Metals Group , and BHP Group gaining
between 0.7% and 2.9%.
Gold stocks rose 1.5%, their highest since Jan 25. Alkane
Resources Ltd advanced 5%, while Dreadnought Resources
Ltd jumped 6.6%.
Bucking the positive trend, banks slid 0.5% to hit
their lowest since early October after brokerage UBS lowered
price targets and ratings on lenders like National Australia
Bank and Westpac Banking Corp .
NAB and Westpac declined between 0.7% and 2.2%. New Zealand's benchmark S&P/NZX 50 index fell 0.3% to finish the session at 11,736.75. Sky Network Television Ltd declined 1.2% after it said it would cut around 170 full-time roles by the end of June as part of a proposed reorganisation. (Reporting by Poonam Behura in Bengaluru; Editing by Sonia Cheema)
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