Australian Shares Extend Gains as U.S. Data Eases Rate Hike Fears

Australian shares kicked off the week on a high note, climbing 32 points or 0.4% to 8,714 in early Monday trading. The gains marked the second consecutive session of growth, with most sectors contributing to the upward trend. Industrial services, consumer durables, and financials led the charge, buoyed by stronger U.S. equity futures following softer jobs data that reduced expectations of a Federal Reserve interest rate hike.

Locally, September's private sector growth was revised upward, primarily driven by the services sector, while factory output remained weak. However, trading volumes were lighter than usual due to holidays in states like New South Wales and Queensland, and China's markets were closed for the Golden Week.

Treasurer Jim Chalmers highlighted the Middle East conflict as the primary factor behind Australia's inflation challenges, emphasizing the pressure it places on the Reserve Bank to maintain a hawkish stance. Among individual stocks, the big four banks saw gains ranging from 0.4% to 0.9%, while BHP and Rio Tinto rose nearly 1%. Other notable performers included Reece (up 1.6%) and Codan (up 1.9%), while QBE Insurance (-1.7%) and Lynas Rare Earths (-1%) lagged behind.