*
Benchmark snaps 7-week losing streak
*
Ends March quarter 2% higher
*
RBA to go for a final 25 bps hike - Reuters poll
*
RBNZ to downshift to 25 bps increase in April - Reuters
poll
(Updates to close)
By Poonam Behura
March 31 (Reuters) - A rally in mining and gold stocks
boosted Australian shares on Friday, ending the first quarter of
2023 about 2% higher, as the country's soft inflation data and
easing global banking crisis fears raised bets of a pause in
rate-hike cycle next week.
The S&P/ASX 200 index ended the day 0.8% higher at
7,177.8 points, their highest close since March 9. The benchmark
advanced 3.2% during the week, snapping a seven-week losing
streak and notched 1.98% gains over March quarter.
Traders in Australia are hopeful of a pause in Reserve Bank
of Australia's (RBA) policy meeting on April 4 as recent
economic data suggests a cumulative 350 basis point (bps) hike
since May last year have started to impact growth.
However, 14 of 27 economists polled by Reuters also predict
that the RBA could go for a final 25 bps hike, while the
remaining 13 of them saw a pause at 3.60%.
"We will see another rate hike by the RBA simply because
inflation is moving in the right direction but is still
stubbornly high," Josh Gilbert, market analyst at eToro said.
Meanwhile, in the aftermath of a banking crisis overseas,
deposit competition among the country's lenders has picked up in
the past few months, with upward pressure on wholesale funding
costs expected to rise further, analysts at Morgan Stanley said
in a note.
Back home, gold stocks rallied 2.2% to a near
11-month high. Resolute Mining soared 8.3% and was the
top gainer on the sub-index.
Miners advanced 2.1%, staging their biggest weekly
gain since early November, with majors like Rio Tinto and BHP Group adding 2.5% each.
New Zealand's benchmark S&P/NZX 50 index fell 0.4%
to finish the session at 11,884.5.
The Reserve Bank of New Zealand is expected to scale back
its tightening pace to a quarter-point rate hike on April 5, a
Reuters poll showed, although economists were split on where the
rates would peak.
(Reporting by Poonam Behura; editing by Uttaresh
Venkateshwaran)
U.S. earnings diary Wall Street Week Ahead Global Economy Week Ahead ................................................................ For latest top breaking news across all markets ))
