Australian Shares Inch Up on Large US Rate Cut Expectations; Regis Healthcare Shares Hit 52-Week High on Proposed Aged Care Benefit Changes

Australian shares inched up on Friday's close following expectations that the US Federal Reserve may cut rates by 50 basis points in its next meeting.

The S&P/ASX 200 Index rose 0.3% or 24.2 to close at 8,099.90.

Speaking in a forum in Singapore, former New York Fed President Bill Dudley said that "there's a strong case for 50," commenting on the expected rate cut during the central bank's upcoming policy meeting, Reuters reported.

"This is yet another twist in the (Fed rate cut) debate," said IG analyst Tony Sycamore.

"Everybody thought we were back on track for 25 basis points, and now 50 is suddenly back on the table," Sycamore added.

Investors are now betting that there is a 45% chance that the US Federal Reserve will cut rates by 50 basis points, the report added.

In domestic news, the Commonwealth Bank of Australia (CBA) said that Australian households spent more in August as consumers celebrated an early Father's Day, offsetting lower spending on utilities.

On the corporate front, Regis Healthcare (ASX:REG) shares rose 7% on market close and earlier hit a new 52-week high after Jarden Research said in a note on Thursday that the Australian Federal Government's proposed overhaul of aged care benefits is expected to be "favorable" for the aged care industry.

Meanwhile, the New South Wales Independent Casino Commission served a show cause notice to Star Entertainment Group (ASX:SGR) related to the findings of an independent report made by Senior Counsel Adam Bell. Trading in the casino operator's shares has been on halt.

Finally, King River Resources (ASX:KRR) received assay results from drilling at the Langrenus and Providence prospects in the Northern Territory. Shares of the mining firm slumped 10% on market close.