Australian shares rise as commodity-linked stocks advance

Australian shares edged higher on Monday, with mining, financial and energy stocks leading the advance, according to Business Recorder. The S&P/ASX 200 gained 0.5 per cent to 8,725.70 points as of 0031 GMT, building on a 0.2 per cent rise last week. Investors were weighing the outlook for borrowing costs following last week's increase in the cash rate, which the Reserve Bank of Australia lifted to a 15-year high.

The Reserve Bank of Australia said inflation risks remained elevated and that it was prepared to tighten again if price pressures persisted. August inflation picked up because fuel costs rose, but the figure came in below forecasts, easing concerns and reducing expectations of another increase in November. Mining shares climbed 0.7 per cent on firmer commodity prices, with Rio Tinto and BHP each gaining more than 1 per cent.

Banks added 0.6 per cent, setting up a second consecutive session of gains, with Westpac climbing more than 1 per cent. Energy shares rose 0.2 per cent as oil prices stayed elevated, while CSL advanced as much as 1.3 per cent after agreeing a deal with Switzerland's Alentis Therapeutics potentially reaching $1.6 billion, targeting rare kidney and liver ailments together. Gold stocks slipped 0.2 per cent while tech shares showed no change, with WiseTech down 2.2 per cent and Xero off 1 per cent.