Australian shares climb for third session, NZ pares gain after RBNZ pause signal

Published on 11/26/2025 at 01:19 am EST
(Updates to close)

• AXJO closes up 0.8%
• Australia's October CPI rises 3.8% y/y, beats 3.6% forecast
• NZ50 pares gains to close up 0.6%
• RBNZ cuts rates by 25 bps, signals end to easing cycle

(Reuters) - Australian shares rose on Wednesday, with broader risk appetite outweighing worries that a hotter-than-expected inflation reading could mark the end of the easing cycle
The S&P/ASX 200 climbed 0.8% to 8,606.50, marking a third straight gain after four weeks of losses.
"The share market is continuing to rise up off its lows. Everyone knew that inflation was going to continue to be hotter than expected and it seems they are more excited about the U.S. rate cuts," said Jessica Amir, market strategist at online trading platform Moomoo. Data showed Australia's consumer inflation rose for a fourth straight month in October to 3.8%, well above the Reserve Bank of Australia's target band of 2%-3%, leading traders to give up hopes of more policy easing.
Swaps now imply just a 7% probability that the RBA can cut rates one more time in May next year, down from 40% before, and there is now a 30% chance of a rate hike by the end of next year.
Miners advanced 1.8% on strong iron ore prices. BHP and Rio Tinto added 2% and 1.4%, respectively.
Financials added 0.4%. Healthcare consumer discretionary stocks added 1.2% each.
In New Zealand, the benchmark S&P/NZX 50 index ended up 0.6% at 13,562.01. The index rose as much as 2% to its all-time high earlier in the session, but pared gains after the Reserve Bank of New Zealand delivered a widely expected 25 basis points cut, but signalled an end to the easing cycle as the economy showed early signs of picking up.
"A less dovish than expected MPC, higher than expected trough in the OCR track combined with a removal of guidance that the committee remains open to further reductions in the OCR meant that the RBNZ decision was taken as hawkish by the market," Citi analysts said in a note.
With new governor Anna Breman taking over next week, RBNZ 's reaction function in 2026 remains unknown, they added.
(Reporting by Shruti Agarwal and Keshav Singh Chundawat in Bengaluru; Editing by Nivedita Bhattacharjee )

Sumber : Reuters