Updates after RBA rate decision
By Sherin Sunny
May 20 (Reuters) - Australian shares rose on Tuesday, led by financial stocks, after the central bank delivered a widely expected rate cut, citing weaker global outlook and easing domestic inflation.
The benchmark S&P/ASX 200 index .AXJO was up 0.5% at 8,336.6, as of 0433 GMT.
On Tuesday, the Reserve Bank of Australia $(RBA)$ cut rates by 25 basis points (bp) to a two-year low of 3.85%, although it remained cautious on further easing.
The central bank said its current monetary policy stance remains appropriately positioned to respond "decisively" to international developments that could materially affect domestic economic activity or inflation.
"Post the RBA's decision, the Australian rates market is pricing in 11 bps of a 25-bp rate cut for the July meeting. A cumulative 59-bp of RBA rate cuts are priced between now and year-end," said Tony Sycamore, market analyst at IG Australia.
The financials sub-index .AXFJ rose 0.9%, with the "Big Four" banks gaining between 0.3% and 2.1%.
The mining sector .AXMM, however, was largely flat. Top miners BHP BHP.AX and Fortescue FMG.AX were down 0.1% and 0.6%, respectively.
Gold stocks .AXGD dropped 1.4%, weighed down by falling bullion prices as a potential ceasefire between Russia and Ukraine curbed the demand for safe-haven assets. GOL/
In corporate news, Australia-based enterprise software firm TechnologyOne TNE.AX surged 10.5% to become the top gainer on the benchmark after it reported a 31% jump in first-half results and raised its fiscal 2025 profit forecast to 13% to 17%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.09% to 12,614.92 points.
(Reporting by Roshan Thomas & Sherin Sunny in Bengaluru; Editing by Nivedita Bhattacharjee and Sherry Jacob-Phillips)
((Roshan.Thomas@thomsonreuters.com))
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