RBA Action Spurs Australian Stocks

Australian stocks, the world’s best performers over the past 11 days, are on course for a record winning streak as investors speculate the central bank will cut interest rates again.

The S&P/ASX 200 Index rose 0.4 percent to 5,836.3 as of 10:30 a.m. in Sydney, heading for a 12th day of gains. A close at that level would mark the longest rally since the index was created in 2000, with about A$140 billion ($109 billion) added to the value of shares over the period. The Australian Stock Exchange All Ordinaries Index, a broader gauge created in 1979, is poised for the longest gaining streak since a 13-day stretch in January 1986.

The Reserve Bank of Australia joined a global wave of central-bank easing this week and interbank cash-rate futures show investors anticipate at least one more cut this year. The S&P/ASX 200 has a forecast dividend yield of 4.7 percent, the highest among the world’s 12 largest equity markets and close to double the rate on the nation’s 10-year sovereign bonds.

Bloomberg

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