Sydney: Australian shares climbed to a nearly two-month high on Friday, continuing a seven-day winning streak, as strong gains in banking and technology sectors outweighed losses in gold-related stocks. The S&P/ASX 200 index rose 0.5% to 8,188.40, reaching its highest point since March 5 and marking its third consecutive weekly gain.
Financials were the key force behind the surge, with the banking sector gaining 0.8%. Australia’s “big four” banks rose between 1% and 1.5%, hitting their highest levels since February 19. Investors are optimistic ahead of the Reserve Bank of Australia’s (RBA) two-day policy meeting on May 19, where over 56% of surveyed participants expect an interest rate cut—from 4.10% to 3.60%.
Technology stocks added 0.4%, following strong earnings from U.S. giants Microsoft and Meta, which calmed worries about AI-related spending. Energy stocks also saw gains of 0.7%, tracking a rise in oil prices after U.S. President Donald Trump hinted at new sanctions on Iran.
However, gold stocks dropped 1.1%, falling for the fifth straight session as easing trade tensions between China and the U.S. weighed on bullion prices. China’s holiday closure also dampened demand. Major miners showed mixed performance: BHP fell 0.9%, while Rio Tinto and Fortescue Metals rose.
Meanwhile, New Zealand’s S&P/NZX 50 index also joined the regional momentum, climbing 0.3% to 12,192.45.
Investors now await signals from the RBA to confirm the next move in interest rates and sustain market optimism.
[Source Credit: Business Recorder]
