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Australian shares edge up on Fed rate signal; NZ hits new peak

Published 11/07/2019, 04:53 pm
Updated 11/07/2019, 05:00 pm
© Reuters.  Australian shares edge up on Fed rate signal; NZ hits new peak
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* Fed chairman "signed and sealed" rate cut - DBS

* Gold miners lead gains in Australia

(Updates to close)

July 11 (Reuters) - Australian shares climbed on Thursday buoyed by broad-based gains after Federal Reserve Chairman Jerome Powell cemented the chance of an ease in U.S. monetary policy later this month.

The S&P/ASX 200 index .AXJO advanced 0.4%, or 26.3 points, to 6,716.1 at the close of trade. The benchmark added 0.4% on Wednesday.

In his testimony before Congress, Powell on Wednesday said "that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. outlook." chair Powell just about signed and sealed an imminent Fed cut at the semiannual monetary policy report overnight," DBS Group Research said in a note to clients.

The remarks boosted gold prices, increasing buying interest in miners of the precious metal .AXGD which ended the session at a more than seven-and-a-half year high.

Resolute Mining Ltd RSG.AX had its best day since March 2, 2017 and was the top performer on the benchmark.

The wider mining index .AXMM also advanced, posting its sharpest gains in more than a week.

Meanwhile, strength in oil prices boosted energy stocks .AXEJ to their highest since July 2.

Financials stocks .AXFJ reversed from losses earlier in the session to edge higher.

No.4 lender National Australia Bank Ltd NAB.AX firmed 1% to a more than four-week peak.

However, Australia and New Zealand Banking Group Ltd ANZ.AX finished the session at an eight-week low.

Both lenders along with Westpac Banking Corp WBC.AX have been slapped with tougher capital requirements by the country's prudential regulator. [nL4N24B49Z

Elsewhere, New Zealand's benchmark S&P/NZX 50 index .NZ50 firmed 0.4%, or 37.18 points, to finish at a record close of 10,687.32.

Dairy firm a2 Milk Company Ltd ATM.NZ strengthened to a more than two-month high.

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