CORRECTED-Banks, real estate stocks propel Australian shares; inflation data on tap

Reuters
Oct 27
CORRECTED-Banks, real estate stocks propel Australian shares; inflation data on tap

Corrects paragraph 13 to remove reference to New Zealand market as that market is closed

Oct 27 (Reuters) - Australian shares rose on Monday, fuelled by strong performances in banks and real estate stocks, while local investors awaited monthly consumer price index figures due later in the week to gauge the central bank's interest rate trajectory.

The S&P/ASX 200 index .AXJO was up 0.6% at 9,070.50 points by 0001 GMT. The benchmark closed 0.2% lower on Friday.

Australia's third-quarter CPI data, due on Wednesday, will likely influence whether the Reserve Bank of Australia cuts its 3.60% cash rate in November.

Around mid-October, RBA Governor Michele Bullock said recent readings on home building costs and market services suggested a risk core inflation had been higher than expected in the third quarter.

Globally, investors are projecting a 25-basis-point rate cut at the conclusion of the U.S. Federal Reserve's monetary policy meeting this week following a cooler-than-expected inflation data last week.

On the local bourse, Australian banks .AXFJ climbed 1.1%, with the "Big Four" banks rising between 0.8% and 1.3%.

Lower interest rates could potentially spur a strong rebound in mortgage demand and lending, providing a boost to both the banking and real estate sectors.

The real estate sub-index .AXRE added 0.5%, led by a 1% charge in peer Goodman Group GMG.AX.

Tech stocks .AXIJ rose 0.8%, tracking gains in Wall Street from Friday. .N

Accounting software company Xero XRO.AX and logistics software maker WiseTech Global WTC.AX advanced 0.1% and 0.4%, respectively.

Bucking the broader upbeat trend, energy stocks .AXEJ fell 0.2% as oil prices slipped amid doubts over the U.S. commitment to enforcing sanctions on Russia's two largest oil companies. O/R

Energy giant Woodside WDS.AX fell 0.3%.

New Zealand markets are closed for a public holiday.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Sherry Jacob-Phillips)

((shivangi.lahiri@thomsonreuters.com))

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