Updates to close
By Nichiket Sunil
Jan 7 (Reuters) - Australian shares closed higher on Tuesday as a rally in heavyweight banking stocks, technology shares and IDP Education outweighed losses in miners and utilities.
The S&P/ASX 200 index .AXJO ended 0.3% higher, marking its fourth consecutive session of gains.
IDP Education IEL.AX, which provides placement services to students worldwide, rose 3.9% after brokerage Macquarie upgraded the stock to "outperform", saying uncertainties around the student immigration policies were already priced in.
IDP led gains in the consumer discretionary sub-index .AXDJ which added 0.7%.
Investors are awaiting November's inflation print due on Wednesday for cues on the central bank's rate trajectory.
Tim Waterer, a market analyst at KCM Trade, said he expects to see headline inflation ticking higher once again, putting no pressure on the Reserve Bank of Australia to lower interest rates.
"A possible rate cut during Q2 this year looks feasible if CPI starts to settle down in the coming few months. But we are all in wait and see mode for now and that includes the RBA."
A delayed rate cut would bode well for financials .AXFJ which ended the day 0.5% higher. Australian banks have reaped profits amid high rates, but market participants are now closely following shrinking margins and stretched valuations.
"Banks are following the general trend of the market higher today even though valuations are looking a little stretched," said Waterer.
Three of the "Big Four" banks rose between 0.5% and 0.7%, while National Australia Bank NAB.AX ended flat.
Technology stocks .AXIJ gained 1.5%, amid a broader rally in global tech shares. SiteMinder SDR.AX gained 3.7%.
Bucking the trend, miners .AXMM slid 0.7%, with BHP BHP.AX and Rio Tinto RIO.AX falling 0.7%, in line with declining iron ore prices. IRONORE/
Utilities firms like AGL AGL.AX and Origin ORG.AX fell 1.8% and 0.7%, as long-term U.S. yields hit their highest since 2023, surpassing dividend-paying utility stocks as a more attractive option for investors.
New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.2% lower.
(Reporting by Nichiket Sunil in Bengaluru; Editing by Varun H K)
((Nichiket.Sunil@thomsonreuters.com;))
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