Banks, energy stocks lift Australian shares as inflation data keeps rate-cut bets intact

May 29 (Reuters) – Australian shares advanced on Thursday, led by banks and energy stocks, a day after data showed that inflation remained steady in April and within the central bank’s target range, encouraging bets of further interest rate cuts this year.

The S&P/ASX 200 index rose 0.2% to 8,414.80, as of 0034 GMT. The benchmark closed 0.1% lower on Wednesday.

Data from the Australian Bureau of Statistics on Wednesday showed that consumer inflation held steady in April leaving the wagers of further rate cuts from the Reserve Bank of Australia still on the table.

Financials rose 0.4%, with the country’s top four banks climbing between 0.2% and 0.6%.

Energy stocks rose 1.1% as oil prices gained after a U.S. court blocked President Donald Trump’s tariffs from taking effect, among other factors.

Woodside and smaller rival Santos added 1.3% and 0.6%, respectively.

On the other hand, mining stocks fell for a third session in a row, down 0.4%, on extended downturn of iron ore futures from slowing steel production in top consumer China.

BHP, Rio Tinto and Fortescue dropped 0.7%, 0.2% and 0.3%, respectively.

Gold stocks slipped 0.7% to a one-week low despite steady bullion prices.

Northern Star Resources declined 1.5% and Evolution Mining dropped 1.9%.

Meanwhile, local technology stocks gained 0.5% as sentiment improved after Nvidia’s first-quarter sales beat estimates.

The sub-index is hovering near a three-month high, with WiseTech Global and ASX-listed shares of Xero climbing 0.4% and 0.2%, respectively.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 12,334.11.

The Reserve Bank of New Zealand lowered borrowing costs by 25 basis points on Wednesday.

The central bank flagged a deeper easing cycle than it previously estimated in view of rising risks from a sharp shift in U.S. trade policies.

(Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)