Australian shares ease as investors look beyond likely RBA hike

Australian shares slipped marginally on Tuesday, according to Business Recorder, as traders waited for a widely anticipated rate increase from the central bank. The S&P/ASX 200 dropped 0.1% to 8,670.10 by 0033 GMT, reversing a 0.2% gain posted on Monday. Attention has shifted to what policymakers signal about monetary policy beyond September.

Markets have already factored in a 25 basis point rise in the cash rate to 4.60%, which would be the fourth increase this year. The accompanying policy statement will be read closely for hints on whether further tightening is coming. Investors are also watching August inflation figures due on Wednesday, after a firmer July core reading kept concerns about lasting price pressure alive.

On the exchange, financials declined 0.5% with the big four banks each down between 0.4% and 0.6%, while energy stocks fell 0.8% to their weakest level since mid-August. Gold miners lost 0.5% as bullion reached a seven-week low, though the broader mining gauge rose 0.4%. Technology shares jumped as much as 4% after two sessions of losses, and Megaport climbed as much as 20.5% after it won three AI infrastructure contracts worth A$978.6 million and raised its 2027 earnings forecast. Codan rallied 17.9% to a record A$61.30 after forecasting full-year profit of A$160 million after tax, compared with A$71.2 million in the prior year.