The Australian sharemarket finished modestly higher on Thursday, with gains in the Materials sector offsetting losses in interest-rate-sensitive sectors as bond yields rose, boosting expectations of a Reserve Bank of Australia (RBA) rate hike early next year.
The S&P/ASX 200 index added 23.2 points or 0.3% to 8,618.4, with five of the 11 sectors closing in positive territory.
Data released during the day showed Australian household spending in October surged by the most in two years, reinforcing the RBA’s inflation concerns, which remain well above its target band.
Materials led the advance as copper hit record highs on fears that potential U.S. tariffs could tighten global supply.
BHP gained 3.6%, Rio Tinto rose 3.9%, while Fortescue Metals slipped 0.7%.
Capstone Copper was the standout performer on the ASX, jumping 8%.
Financials were also firmer, with Commonwealth Bank up 0.8%, NAB rising 0.2%, ANZ increasing 1.7%, and Westpac gaining 0.7%.
Conversely, higher Australian bond yields weighed on real estate stocks. Goodman Group fell 2.7%, Charter Hall 1.4%, Mirvac 1.5%, and Stockland 1.9%.
In company news, BetMakers advanced 5.7% after signing a five-year exclusive agreement with Betfair Australia to provide the full technology stack for the launch of premium wagering brand CrownBet.
Vulcan Energy Resources tumbled 33.1% following a €398 million (A$710 million) capital raise via 178 million new shares at $4 each to finance its renewable energy project.
Regis Healthcare declined 3.9% after agreeing to sell its Ayr and Home Hill aged care homes in North Queensland to not-for-profit provider Ozcare, generating a pre-tax gain of A$25 million.
On the bond market, the 10-year and 2-year yields rose to 4.708% and 3.991%, up 1.9% and 2.5% respectively.