Australian shares rise 0.6% driven by banking, real estate

Australian shares increased on Tuesday, supported by gains in banking and real estate stocks. Investors appeared optimistic ahead of the government's budget announcement, scheduled for later in the day. The S&P/ASX 200 index rose 0.6% to reach 7,981.7 points. On Sunday, the Australian government revealed plans to extend electricity rebates for households until the end of 2025. This decision will impact the budget by A$1.8 billion ($1.13 billion). The government is set to report a budget deficit, ending two years of surpluses. This news is important for the Reserve Bank of Australia (RBA), which is also awaiting inflation data due on Wednesday. Financial stocks led the market gains, increasing by 1%. The "Big Four" banks saw their shares rise between 0.9% and 1.2%. Real estate and technology sectors also performed well, with increases of 1.1% and 1.5%, respectively. However, shares in the consumer staples sector dropped by 0.4% for a second straight session. Investors took profits after a rally sparked by a regulatory investigation that cleared major chains of price-gouging allegations. Supermarkets Coles and Woolworths saw small losses of 0.1% and 0.3%. In New Zealand, the S&P/NZX 50 index also saw a rise of 0.6%, reaching 12,205.50 points.