Global Markets | Australian shares are rising as BHP hits a record high after a first-half profit margin

Australian shares rose on Tuesday, lifted by BHP after the world’s largest listed miner rose to a record with stronger first-half results, setting the tone as earnings season begins for the resources sector. The S&P/ASX 200 ‌ extended gains to close ⁠0.2% higher at 8,958.90 points, building on Monday’s 0.2% gain. With US markets closed on Monday for Presidents’ Day and several Asian markets for the Lunar New Year, the focus remained on domestic profits. BHP rose 4.73% to a record A$52.74 after a stronger-than-expected half-year profit, driven by copper earnings, sending the mining sub-index up 1.3%. Rival Fortescue lost 0.5%. Rio Tinto, up 0.2%, will report on Thursday and Fortescue next week, with investors watching for signals on iron ore demand and the sector outlook.

Expected supply shortages are likely to maintain upward pressure on commodity prices, and Tuesday’s moves reflected positioning for profit gains in a tighter supply environment, said Tim Waterer, chief market analyst at KCM Trade. Minutes from the Reserve Bank of Australia’s latest meeting showed policymakers believed inflation would have remained high without this month’s rate hike, and there was uncertainty over whether further tightening would be necessary.

Financial performance was little changed as losses at three of the big four banks offset profits at Westpac, which rose 0.3%. Investors turned cautious after last week’s rally, with Waterer attributing the moves to profit-taking after bank profits lifted the subindex 5.4%.

Traders are now looking to Thursday’s jobs data, which is expected to show a cooling in hiring and a slight increase in unemployment – a key indicator of the country’s interest rate outlook. To limit some losses, gold stocks and energy companies fell 1.2% and 0.4% respectively. In New Zealand, the S&P/NZX 50 index fell 0.7% to 13,031.62, its lowest close in more than five months. The Reserve Bank of New Zealand will hold its first meeting of the year on Wednesday and interest rates are expected to remain stable. (Reporting by Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee)