Australian shares log record closing high on healthcare, IT boost

Reuters11-25 14:12
Australian shares log record closing high on healthcare, IT boost

Australia inflation data due later in the week

New Zealand stocks hit level unseen since Oct 2021

New Zealand cenbank expected to cut rates on Wednesday

Updates to close

By Adwitiya Srivastava

Nov 25 (Reuters) - Australian shares posted a record closing high on Monday, led by healthcare and technology stocks, as investors cheered the nomination of Scott Bessent as the next U.S. Treasury secretary, expecting he would be a voice for markets.

The S&P/ASX 200 index .AXJO rose 0.3% to 8,417.6, extending its gains to a second session.

U.S. President-elect Donald Trump said on Friday he would nominate prominent investor Bessent as U.S. Treasury secretary, leading to some strategists saying his appointment could reduce the chance of severe tariffs.

"We can see that Trump's nomination of Scott Bessent is having a positive impact on markets. U.S. futures are in the green," said Josh Gilbert, a market analyst at eToro AUS Capital.

"Investors saw the move as positive, with the expectation that he would prioritise economic and market stability."

In Australia, investors were awaiting key inflation data and comments from Reserve Bank of Australia $(RBA)$ Governor Michelle Bullock, due later in the week, for further clarity on the central bank's monetary policy stance.

In Sydney, healthcare stocks .AXHJ climbed 1.3%. CSL CSL.AX, one of the country's priciest stocks, jumped 1.7%.

Technology stocks .AXIJ added to the gains, rising 0.9% after their Wall Street peers closed higher on Friday. .N

On the other hand, financial stocks .AXFJ slipped 0.2%, led by a 1.3% fall in ANZ Group ANZ.AX. Westpac WBC.AX fell 1.2%, while Commonwealth Bank of Australia CBA.AX rose 0.7%.

"We're seeing some profit-taking in the financial sector. CBA hit a record high last week, while Westpac was trading at 52-week highs," Gilbert said.

Gold stocks .AXGD fell about 1.3% as bullion prices eased. GOL/

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 1.2% to 13,196.08, its highest since early October 2021, on expectation of an interest rate cut later in the week.

The country's central bank is expected to cut rates by 50 basis points on Wednesday, a Reuters Poll showed.

(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Subhranshu Sahu)

((Adwitiya.Srivastava@thomsonreuters.com))

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