Australia: Shares hit fresh high on mining and banks boost

AUSTRALIAN shares rose to a record high on Thursday, driven by miners and banks, while investors awaited US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday to gauge the interest rate trajectory.

The S&P/ASX 200 index was up 0.6 per cent at 8,966.80, as of 0043 GMT, after touching a fresh high of 8,973.70 earlier in the session.

The benchmark has gained 2.6 per cent so far this month, hitting multiple record highs as risk sentiment improved due to a slew of factors including an interest rate cut and positive corporate earnings.

Investors around the globe are focussed on whether Powell will push back against market expectations for a rate cut next month when he speaks at the Fed’s Jackson Hole symposium on Friday, following a weak jobs report for July.

Traders are currently pricing in around an 82 per cent chance of a 25-basis-point rate cut in September, according to the CME Fedwatch tool.

Back in Australia, investors focussed on corporate earnings.

Australia-listed shares of James Hardie deepened their rout from Wednesday, falling as much as 9.6 per cent to A$28.92, their lowest level since Jan 20, 2023.

The fibre cement maker on Wednesday flagged a bleak outlook for fiscal 2026 and forecast earnings below street view.

Whitehaven Coal fell as much as 4.2 per cent to a one-month low of A$6.160, as the coal miner’s annual profit declined by more than half.

Miners rose 1 per cent, with BHP and Rio Tinto up 0.1 per cent and 0.9 per cent, respectively.

Financials climbed 0.3 per cent, with the “big four” banks rising between 0.1 per cent and 0.7 per cent.

New Zealand’s benchmark S&P/NZX 50 index rose 0.4 per cent to 13,126.80.

The Reserve Bank of New Zealand said the effect of interest rate cuts on the local economy had been slower than expected, with tariff threats impacting business and consumer confidence. REUTERS