Australian shares hit over 7-week high as banks, energy stocks gain; Coles tumbles

By Reuters News14 hours ago Updated

Oct 30 (Reuters) - Australian shares hit a more than seven-week high on Friday as banks and energy stocks advanced, while supermarket operator Coles fell over 10% and headed for its worst session ever after missing quarterly revenue estimates by a narrow margin.

The S&P/ASX 200 index .AXJO rose 1.1% to 8,992.60 by 0017 GMT, hitting its highest since September 8. The benchmark was up more than 2% for the month, putting it on track for its strongest monthly performance in three months.

Investors were awaiting the Reserve Bank of Australia's (RBA) November 3 policy decision after the US Federal Reserve and the European Central Bank left interest rates unchanged earlier this week.

Swaps now imply a roughly 43% chance of a fifth rate hike next week and more than an 80% probability of a hawkish outcome at the RBA's December meeting. 0#AUDIRPR

Coles COL.AX, Australia's second-largest grocer, fell more than 10% after posting first-quarter revenue slightly below analysts' estimates, putting the stock on course for its steepest one-day decline on record.

The drop weighed on the consumer staples index .AXSJ, which fell as much as 4% and headed for its weakest session since late April.

Financials .AXFJ rose 1.3% to a near three-month high ahead of earnings next week. The "Big Four" banks advanced between 0.9% and 1.2%. The sector was on track for its best month since February.

Energy stocks .AXEJ gained as much as 2.2% as oil prices remained above $100 per barrel. Santos STO.AX, Woodside Energy WDS.AX and Origin Energy ORG.AX advanced between 1 and 1.9%. O/R

Miners .AXMM slid 0.3%, tracking a dip in copper prices, but were set for their first weekly gain in nine weeks. {MET/L]

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.3% to 13,752.85, on track for its best session in more than a week.

Reserve Bank of New Zealand Monetary Policy Committee member Karen Silk said a hawkish move in December would be justified if inflationary pressures continued.