Australian shares inch higher supported by miners, tech stocks

By Keshav SinghChundawat

Sept 22 (Reuters) - Australian shares rose modestly on Tuesday as gains in mining and tech stocks outweighed weakness in energy stocks, while markets remained focused on next week's central bank meeting for clues on its future monetary path.

The benchmark S&P/ASX 200 index .AXJO rose 0.3% to 8,757.80, its highest closing level since September 10.

Reserve Bank of Australia's Governor Michele Bullock said upside risk to inflation may be materialising given energy prices have stayed high, while local demand continues to be in excess.

Markets are pricing in a rate hike at the central bank's September 28-29 meeting, with attention now turning to the August employment data due later in the week, for clues on the extent of tightening that policymakers will bring in to combat inflation.

A strong jobs report would support expectations of another rate increase later this year, while a weak report could see investors start pricing September as the final move of the cycle, said Philip Pepe, a senior equities analyst at Shaw and Partners.

"Given the RBA's current concern about persistent inflation, the Bank is likely to place more weight on an unexpectedly strong labour market than on a modest deterioration."

Miners .AXMM gained 0.6% as copper prices rallied on strong demand in China, with BHP Group BHP.AX ending 0.7% higher. MET/L

Technology stocks .AXIJ jumped 2.7%, clocking their best session since August 28, tracking bullishness in tech-heavy Nasdaq. .N

Healthcare .AXHJ, consumer discretionary .AXDJ and real estate stocks .AXRE rose between 0.8% and 1.3%.

Capping gains, the energy sub-index .AXEJ dropped 1.2% to log its worst session in a week. O/R

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.4% to 13,875.48 points, its highest in two weeks.

The country's top central banker said that if higher energy prices persist, it would lead to higher inflation than previously forecast.