SYDNEY: Australia shares closed higher on Wednesday, lifted by modest gains in mining and healthcare stocks, as most sectors recouped losses after investors appeared to show scant response to developments in the Ukraine-Russia standoff.
The S&P/ASX 200 index ended 0.6% higher at 7,205.70. The benchmark closed 1% lower on Tuesday.
Australian Prime Minister Scott Morrison announced the first tranche of sanctions on Russia on Wednesday after Moscow ordered deployment of troops into two breakaway regions of Ukraine, marking Australia’s entry into the long-standing geopolitical crisis.
Most sectors were caught in a sell-off on Tuesday amid heightened Russia-Ukraine uncertainty.
Healthcare stocks were the biggest boost to the benchmark with a 1.2% jump. Sector heavyweights Cochlear Ltd and CSL Ltd gained 5.1% and 0.7%, respectively.
Mining shares followed suit to gain 0.8%, with BHP Group climbing 0.6% while Rio Tinto gained 1.2%.
“Investors are not shy about moving more cash while the uncertainty continues and might continue to be a little jittery in the coming weeks,” said Dale Raynes, an associate director at CPS Capital commenting on the market’s volatility.
Raynes said uncertainty in the past few weeks led to the build-up of growing tensions between Russia and Ukraine. “The new sanctions don’t come as a surprise to investors,” he added.
Australia gold stocks were the biggest drag to the benchmark, falling 1.8% to break their four-day winning streak.
Newcrest Mining, the country’s biggest gold miner, slid 2.1% as bullion prices were flat after safe-haven demand was offset by a rise in U.S. Treasury yields.
Among other sectors, technology and financial stocks climbed 2.2% and 0.3%, respectively.
Across the border, New Zealand dollar strengthened after the Reserve Bank of New Zealand raised interest rates back to pre-pandemic levels, signalling further tightening to counter inflationary risks.
New Zealand’s benchmark S&P/NZX 50 index gained 0.2% to finish the session at 12,134.42.
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