Australian shares post modest gains as commodities support

Australian shares edged higher on Monday, and hovered just below the crucial 8,000 level, as commodities supported a slight rebound in the benchmark index following a sell-off seen in the previous session amid global market uncertainty.

The S&P/ASX 200 index was up 0.2% at 7963.8, as of 2341 GMT.

The benchmark fell 1.8% to close below the key 8,000 mark for the first time in six months on Friday, as sentiment was subdued amid uncertainty around global trade.

Energy stocks rose nearly 1%, in tandem with recovering underlying crude oil prices, after US President Donald Trump warned of sanctions against major oil producer Russia, raising concerns over potential disruptions to the commodity’s supply chain.

Oil and gas major Woodside Energy gained 0.9%, while smaller rival Santos rose 0.5%.

Benchmark heavyweights financials picked up 0.4, yet to recover from the sell-off that Australian banks witnessed on Friday.

Top lender Commonwealth Bank of Australia traded 0.3% higher, but its smaller rival National Australia Bank fell 0.2%.

Mining stocks advanced 0.3%, supported by recovering iron ore prices, while a 1.3% jump in iron giant Rio Tinto more than offset Fortescue’s 2.2% drop.

Consumer staples picked up 0.7%, while real estate stocks rose 0.4%.

Gold stocks gained some 0.4%, as bullion continued to shine while investors flocked to the safe-haven commodity on lower-than-expected monthly job growth in the United States.

Gold major Northern Star Resources gained some 0.4%, which more than offset Evolution Mining’s 1% drop.

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Technology stocks edged 0.1% higher, in tandem with Wall Street’s gains on Friday after Federal Reserve Chair Jerome Powell assured investors on the health of the US economy.

The US Dow Jones Industrial Average rose 0.52% at 42,801.72 on Friday.

The S&P 500 gained 31.68 points while Nasdaq gained 0.70%.

New Zealand’s benchmark S&P/NZX 50 index gained 0.1%, reaching 12,402.83, boosted by a 3.2% rise in local dairy giant Fonterra, which raised its earnings forecast for the year, driven by strong performance in its consumer operations.