Australia shares flat as banks offset lithium-led mining losses

Australian shares were largely flat on Wednesday, as strong gains in banks countered losses in miners and gold stocks, triggered by weaker lithium miners due to easing supply concerns.

The S&P/ASX 200 index rose 0.1% to 8,811.30 by 0050 GMT.

The benchmark ended 0.5% lower on Tuesday. Heavyweight miners were the biggest drag on the index, with losses in lithium miners weighing on the sub-index.

Shares in domestic lithium companies slumped after a media report said that Chinese battery giant Contemporary Amperex Technology (CATL) was set to resume production at its key lithium mine in China.

Pilbara Minerals lost 15%, heading for its worst day since June 1, 2022, and was the top loser in the benchmark. Mineral Resources fell 8% to its lowest level since August 8.

The weak sentiment spilled over to the rest of the sector with BHP Group losing 1.3%. Gold miners lost 1.2% despite bullion prices hitting a record peak. Gold miner Evolution Mining shed 1.3%.

Commodity stocks continued to trade in the red with energy firms losing as much as 0.4% to hit its lowest level since July 17. Gas producer Santos declined 0.2%.

Bucking the trend, heavyweight banks snapped a two-day losing streak to gain 1.1%. The “Big Four” banks all rose between 1.2% and 1.4%.

Health stocks added as much as 0.3% while real estate stocks advanced 0.5%.

Technology stocks gained as much as 0.3%, on track to log its fifth consecutive session of gains.

New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 13,298.97 points as of 0050 GMT.