Australian shares rise on banks, IT boost; Fed policy meet on tap

Australian shares climbed higher on Monday, lifted by banks and information technology stocks, as traders assessed recent inflation data to get further clarity on the trajectory of early rate cuts, both locally and globally.

The S&P/ASX 200 index XJO was up 0.6% at 7,620.800, as of 0045 GMT. The benchmark closed 1.4% lower on Friday.

Last week, market participants saw an influx of crucial inflation data from Australia and the U.S., indicating that sticky inflation would overstay its welcome.

Investors were on toes ahead of the much-anticipated Federal Reserve's policy committee meeting due later this week. A wide array of economic data from the United States has sparked bets of the Fed sticking to its current cash rate at the meeting.

Heavyweight mining stocks XXMM edged 0.1% higher as iron ore prices rose after demand improved from top buyer China.

Sector giant BHP Group BHP lost 0.4% amid speculations of the global miner's intentions to make a sweetened bid for London-listed Anglo American AAL.

Rate-sensitive financials rose 0.7% ahead of an earnings-heavy week for Australian lenders. The "Big Four" banks gained between 0.3% and 0.7%.

Energy stocks XEJ inched 0.2% higher, tracking a rise in global oil prices, which were buoyed by heightened supply concerns over the Middle East conflict.

Oil and gas giant Woodside Energy WDS rose 0.3%.

Healthcare sector XHJ surged 0.6% with biotech giant CSL CSL rising 0.2%.

Information technology firms XXIJ gained 1.1% in tandem with its U.S. peers on Nasdaq following strong quarterly results from tech giants Microsoft MSFT and Alphabet GOOG.

Australian telecommunication stocks surged 1.4%, boosted by a 2.4% jump in TPG Telecom TPG after the company signed an agreement with Optus hoping to expand its coverage and cut its capital spending.

New Zealand's benchmark S&P/NZX 50 index NZ50G rose 0.3% to 11,840.0900 points.