Banks and tech stocks lift Australian shares; CSL, Cochlear rally on strong earnings

Australian shares rose on Tuesday, helped by the gains in banks and technology stocks, while healthcare stocks CSL and Cochlear rallied after recording higher annual earnings.

The S&P/ASX 200 index climbed 0.3% to 7,300.7 by 0046 GMT, its biggest intraday gain since Aug. 8.

The benchmark ended down 0.9% on Monday.

On the domestic bourse, banks rose 0.4%.

The “big four” banks advanced between 0.1% and 1.3%.

National Australia Bank said its third-quarter margins declined due to increased home lending competition and higher deposit costs. Its shares, however, inched up 1.3%.

Technology stocks rose 1.2%, tracking an overnight Wall Street rebound in peers.

Australia shares set for worst day in nearly 2 weeks as banks, miners weigh

Heavyweights Xero and ASX-listed shares of Block gained 0.9% and 0.7%, respectively.

Gold stocks, on the other hand, extended losses, falling 0.8% as a stronger dollar took the shine off bullion, while investors awaited fresh catalysts to gauge the downside risks after mixed US inflation numbers last week.

Newcrest Mining retreated 0.4% and Northern Star Resources slid 0.7%. Health stocks soared 2.9%, their best intra-day gains in nine months, led by CSL and Cochlear.

Biotech giant CSL rose 3.4% as it forecast increased earnings in fiscal 2024 for all its segments on strong demand and cost cutting. Cochlear’s shares rallied 6.4% as it posted a 4% jump in annual net profit attributable to A$300.6 million ($194.94 million).

Treasury Wine Estates reported a 3.3% fall in annual profit, mainly hurt by a decline in wine sales in the United States.

Its shares added 0.6% Lake Resources was the biggest gainer on the ASX 200 index, soaring 30.1%, after the lithium developer reported “successful testing” at its lithium brine project in Kachi, Argentina.

New Zealand’s benchmark S&P/NZX 50 index rose 0.1% to 11,809.93.