Australian equities rose 43 points, or 0.5%, to 8,739 in early Thursday trade, extending the previous session’s gains. Sentiment improved as a rebound in U.S. stock futures helped counter the overnight pullback on Wall Street that followed the Federal Reserve’s first interest rate hike in three years. Bargain hunting continued after the local market hit a near ten-week low earlier this week, with investors weighing persistently high inflation and the prospect of another Reserve Bank rate move later this month.
Reserve Bank Governor Michele Bullock is due to testify before Parliament on Friday, an event closely watched for policy signals. In Australia’s top trading partner China, a mixed set of August economic data boosted expectations for additional stimulus, providing further support to local risk sentiment.
Gains were led by financials, technology, and manufacturing stocks, partly offset by weakness in healthcare and resources. The big four banks advanced, alongside insurers QBE (up 1.9%) and IAG (up 0.8%). Among individual outperformers, Qantas climbed 2.2%, Bluescope Steel added 2.1%, and Ramsay Health Care gained 1.2%. The energy sector lagged, with Woodside falling 1.5% and Santos down 2.1%.
