Australian shares gain on mining boost, cenbank decision in focus

Australian shares rose on Monday, as miners jumped on hopes that COVID-19 restrictions in China would be eased, with investors eyeing the central bank's policy meeting this week where they expect another interest rate hike of 25 basis points.

The S&P/ASX 200 index XJO added 0.3% to 7,325.9 points by 2333 GMT. The benchmark fell 0.7% on Friday.

The Reserve Bank of Australia is expected to deliver a quarter-point rate hike — its third in a row after a succession of half-point moves — at its upcoming policy meeting on Tuesday as the country showed signs of cooling inflation, according to a Reuters poll.

Financials XXIJ advanced 0.1%, with the "Big Four" banks gaining between 0.1% and 0.3%.

Local miners XXMM climbed 1.7% and were among the top gainers on the benchmark after iron ore prices were buoyed by expectations that top steelmaker China would ease its stringent COVID-19 policies.

Iron ore behemoths BHP BHP and Rio Tinto RIO gained 1.7% and 0.9%, respectively.

Energy stocks XEJ gained 0.2%. Sector major Woodside Energy WDS and Beach Energy BPT rose 0.06% and 0.4%, respectively.

Separately, Santos STO added 0.6% even as Australia's Federal Court on Friday rejected its appeal to resume drilling on its $3.6 billion Barossa gas project.

Tech stocks XXIJ lost 0.4%. ASX-listed shares of Block Inc SQ slid 0.9%, while software solution provider Wisetech Global WTC slid 1.3% and was among the top losers on the sub-index.

Weakness in bullion prices led gold stocks XGD to drop 0.5%. The country's largest gold miner Newcrest Mining (NCM.AX) slipped 0.2%.

In New Zealand, the benchmark S&P/NZX 50 index NZ50G fell 0.4% to 11,590.83 points.