Australian shares edge higher as banks overshadow mining losses

Australian equities posted a modest gain on Thursday, with the S&P/ASX 200 up 0.2% at 8,868.20 as of 0105 GMT, Business Recorder reported. Financial shares helped offset a 0.5% decline among miners, while third-quarter inflation data lifted expectations of another Reserve Bank of Australia rate increase.

Markets were pricing in nearly 85% odds of a quarter-point rise at the November 3 meeting, compared with 60% before the inflation figures. The Big Four banks advanced between 0.8% and 1.3%, while Suncorp fell 2.9% after reducing its fiscal 2027 premium growth outlook to about 3%; energy stocks gained 1% as Santos and Woodside Energy also rose. In New Zealand, the S&P/NZX 50 added 0.3%, while the central bank held its cash rate at 2.75%, although its governor said a December increase was a strong possibility depending on economic and inflation trends.