Australian shares ended a three-day losing streak to close higher on Tuesday, thanks to strength in mining and energy companies, which offset pressure on health care and consumer stocks.
The S&P/ASX 200 index ended 0.2% higher at 6,856.9 points after rising as much as 0.5% earlier in the session.
The index recovered from the lowest level in a year recorded on Monday.
Mining companies were the biggest gainers on the index, ending the day up 1% after iron ore prices rebounded.
Mining groups BHP Group, Rio Tinto and Fortescue Metals added between 0.5% and 2.6%.
Energy stocks, which rose over the past week on concerns about oil supplies, resumed their rise as core prices regained some ground.
Oil and gas wholesaler Santos shares rose 0.6%.
Banks were also big gainers on the index, ending the day up 0.1%, with the “big four” banks trading in the green. Macquarie Asset Management Group shares rose 0.6%.
Shares of rare earths giant Lynas ended the day 12.4% higher after the Malaysian government said the company will be allowed to import raw materials containing naturally occurring radioactive materials until March 2026.
Investors are now awaiting Australia’s September inflation data, which is likely to set the tone for the Reserve Bank of Australia’s (RBA) upcoming policy meeting.
Analysts at the National Bank of Australia expect the country’s central bank to raise interest rates if inflation numbers in September are higher than August expectations.
Healthcare stocks were a big drag on the main index, falling 0.3%. Major sector stocks Pro Medicus and Ramsay Healthcare fell 2% and 0.2%, respectively.
Consumer stocks lost 1%, with retailers Woolworths and Coles down 1.3% and 0.9% respectively.
New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to end the session at 10,960.6 points. (Reporting by Rishav Chatterjee in Bengaluru; Editing by Dania Ann Topel)
