The Australian stock market outperformed many of its Asian counterparts, buoyed by the prospect of a potential rate cut from the Reserve Bank of Australia in February, following encouraging signs from a slowing Core Consumer Price Index (CPI). This optimism comes despite generally negative sentiments from Wall Street overnight.
The flagship S&P/ASX 200 Index has risen by 77.10 points, or 0.93%, reaching 8,362.20. Meanwhile, the broader All Ordinaries Index has increased by 67.80 points, or 0.79%, to 8,610.70. Leading the gains is Bellevue Gold, climbing 5.8%, followed by Regis Resources with a 5.2% increase. West Gold Resources and Genesis Minerals have both advanced over 4%, with SIMS also rising close to 4%.
Conversely, Deep Yellow saw a decline of 7.1%, with ZIP Co. following with a 5.2% drop. Paladin Energy decreased by 4.7%, while both Boss Energy and Block recorded losses exceeding 3%.
On the foreign exchange front, the AUD/USD pair is trading at 0.6229, slightly down from 0.6230 at the previous close, given the rate cut anticipations that are applying downward pressure on the Australian Dollar.
Earlier data from the Australian Bureau of Statistics revealed that the headline Consumer Price Index rose by 2.3% annually in November, surpassing the 2.1% increase witnessed in the prior two months and marking the highest reading since August, exceeding forecasts of a 2.2% rise. However, the Annual Trimmed Mean, a core inflation measure, decreased to 3.2% from 3.5% in the previous month.
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