Miners buoy Australian shares on copper boost; banks and energy stocks cap gains

Australian shares eked out slight gains on Wednesday, largely driven by heavyweight miners, while losses in banks and energy firms limited further strength.

The S&P/ASX 200 index rose 0.3% to 8,787.90 by 0010 GMT.

The benchmark finished up 0.3% Tuesday.

The resources sub-index, accounting for more than a quarter of the Australian bourse, advanced more than 2% in its steepest daily gain since late August.

The sub-index is benefiting from copper prices extending gains as top consumer China stocked up on the metal ahead of holidays.

Sector majors BHP and Rio Tinto surged 1.6% and 1%, respectively.

Gold miners added 3.4%, hitting a near three-week peak.

Northern Star Resources and Evolution Mining added between 3% and 4%, each. Real estate stocks advanced 0.3% while the consumer staples sub-index marginally rose 0.2%.

Financials bucked the trend to lose 0.3%, with three of the “Big Four” banks falling between 0.1% and 0.6% while National Australia Bank traded in positive territory.

Insurance Australia Group slipped as much as 3.1% in its largest one-day decline in a month, emerging as one of the benchmark’s top losers after the country’s competition regulator blocked its planned takeover of RAC Insurance.

Energy stocks hit a near four-week low after falling 0.9%, as crude prices extended losses on hopes of increased supplies from the Middle East.

Index leaders Woodside Energy and Santos slipped as much as 1.6% and 1.8%, respectively, to hit multi-week lows.

Technology stocks failed to mirror the Nasdaq Composite’s record high overnight, declining 0.4%.

WiseTech Global lost as much as 1.4%, while Xero shed as much as 3% to hit its lowest since March 2020.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index rose by around 10 points to 13,885.73.