Australian shares rise as RBA governor warns inflation risks materialising

Business Recorder reported that Australia's S&P/ASX 200 index was 0.3% higher at 8760.6 points on Friday, as of 0002 GMT. The gain marked a third straight session of advances, putting the index on pace for its strongest week in three, up roughly 0.2%. Strength in mining shares, lifted by firmer commodity prices, supported the market.

Governor Michele Bullock of the Reserve Bank of Australia pointed to Middle East tensions and the artificial intelligence boom as forces lifting prices, and July inflation came in above expectations. Borrowing charges have climbed 75 basis points so far this year, and traders still hold wagers on another increase later this month. UBS sees two 25 basis point increases, one in September and one in November, citing AI investment, higher oil prices and tougher stances by global central banks. Pricing in markets points to a 92% chance of a 25 basis point hike from the 4.35% cash rate at the September 29 meeting.

Miners rose 1.6% on firmer iron ore and copper, which benefited from Chinese restocking ahead of a holiday, though the sub-index slipped 0.8% over the week for a third straight weekly decline. Gold miners jumped 3.2%, their strongest session in a month, while technology shares added 0.6% following a tech-driven advance on Wall Street. New Zealand's S&P/NZX 50 gained 0.1% to 13,767.51 points.