Australian shares rebounded on Tuesday, with mining and energy stocks leading the advance, after Wall Street closed slightly higher overnight as investors found respite in positive US economic data amid rate-hike worries.
The S&P/ASX 200 index advanced 0.5% to 7,263.7 by 0024 GMT.
The benchmark fell 1.1% on Monday. Data released on Monday showed US core capital goods orders accelerated in January, beating estimates, while contracts to buy previously owned US homes rose the most in more than 2-1/2 years.
At the same time, comments from Federal Reserve Governor Philip Jefferson indicated that inflation in the United States remained “stubbornly high”, adding fuel to concerns of further monitory policy tightening.
Fed funds futures show traders are pricing in a third 25-basis-point rate hike for this year and see rates peaking at 5.4% by September.
Miners rose 2%, leading gains on the benchmark Australian stock index. Sector majors BHP Group and Rio Tinto gained 1.1% and 1.7%, respectively. Financial stocks climbed 0.4%, with two of the so called “big four” banks posting gains.
Australia’s biggest business lender, National Australia Bank, climbed up to 0.6%. Energy stocks gained 1.4%, with industry giants Santos and Woodside Energy jumping 1.7% and 1.4%, respectively.
Gold stocks advanced 2.2%, with sub-index majors Newcrest Mining and Northernstar Resources rising 2.8% and 2.8%, respectively.
Australian shares fall most in 8 weeks as miners, rate-hike fears weigh
Technology stocks dropped 0.1%, with Block Inc’s ASX-listed shares down 2.5%. Xero gained 0.2%.
New Zealand’s benchmark S&P/NZX 50 index advanced 0.32% to 11,823.64.
Comments
Comments are closed for this article.