Australian shares rose 18 points, or 0.2%, to 9,037 in early trade on Friday, extending the previous session’s gains. The advance followed overnight strength on Wall Street, where US stocks climbed as Treasury yields fell after Federal Reserve Governor Christopher Waller said he would be “inclined to support” holding interest rates steady, provided there are no surprises in upcoming inflation data.
On the domestic front, August services growth was revised higher, reflecting improving business confidence that is now close to its level before the outbreak of war in the Middle East. Most sectors traded higher, led by non-energy minerals, technology, and healthcare.
Notable gainers included Cochlear Ltd. (up 2.9%), Perseus Mining (up 2.1%), and JB Hi-Fi Ltd. (up 1.5%). The four major banks each advanced between 0.4% and 1.0%.
Despite Friday’s rise, the market remains on track to finish the week lower, currently down about 0.7%. Earlier gains have been eroded by mounting concerns that the Reserve Bank of Australia could deliver another interest rate hike at its meeting later this month, following stronger-than-expected Q2 GDP data.
