Australia Stocks End up Slightly as Key Inflation Data Looms

By Rebecca Thurlow

SYDNEY--Australia's share market ended a fraction higher Tuesday as investors awaited key inflation data that could determine whether the Reserve Bank of Australia cuts official interest rates further.

The S&P/ASX 200 closed up just 3.9 points, or 0.1%, at 5537.5, after spending most of the day in negative territory.

Taking its lead from weaker U.S. stock indices, the local bourse started lower before edging up through much of the session.

Financial stocks and property trusts rose as attention turned to inflation numbers due Wednesday. The data is expected to confirm that a return to the Reserve Bank's desired inflation target band of 2%-3% is still years away, giving the central bank a compelling case to cut rates in August.

The four major banks all gained ground, led by ANZ, up 0.9%, and National Australia Bank, up 0.7%.

Energy stocks fell as concerns about oversupply and weak demand weighed on the oil price. Santos ended 2.4% lower, Oil Search 1.1% and Woodside 0.8%.

Health-care companies also dragged on the index, giving up much of Monday's gains. CSL fell 1.2% and ResMed 1.9%.

Woolworths, also retreated from highs set Monday. The retailer rose Monday after announcing a restructure plan to help it battle increased competition but analysts warned Tuesday it would take a long time for management to turn the company around. The stock ended down 3.3%.

Write to Rebecca Thurlow at [e-mail]

(END) Dow Jones Newswires

July 26, 2016 02:59 ET (06:59 GMT)

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