Australian shares extend recovery as miners rally on strong metal prices
- S&P/ASX 200 index was up 0.2% at 8,713.10
Australian shares extended their recovery streak on Wednesday after a recent selloff linked to the Middle East war, as investors purchased mining stocks, with stronger iron ore and gold prices lifting the sector.
The S&P/ASX 200 index was up 0.2% at 8,713.10, as of 2339 GMT. The benchmark ended 1.1% higher on Tuesday.
Equities moved toward recovery following a recent selloff driven by inflation worries linked to volatile energy prices. Market disruptions caused by the Middle East conflict had nearly wiped out gains made earlier in the year, leaving the benchmark index trading flat on a year-to-date basis.
U.S. President Donald Trump predicted the conflict could end soon even as the United States and Israel intensified airstrikes on Iran, pushing oil prices higher amid concerns over supply disruptions.
Mining stocks rose 1.5%, supported by stronger iron ore prices, with BHP Group shares climbing 1.1% and Rio Tinto gaining 0.7%.
Lynas Rare Earths surged as much as much as 14.8% to its highest since October 21 after extending its rare earths supply agreement with Japan Australia Rare Earths to 2038.
Gold stocks rose 1.6%, supporting the mining sub-index as gold prices climbed nearly 2% overnight on a weaker U.S. dollar and easing inflation concerns.
Northern Star Resources gained 2.5%, while Evolution Mining advanced 0.5%.
Financial stocks also moved higher, rising 0.5%. Among the “big four” banks, ANZ Group led gains with a 1% increase, followed by Commonwealth Bank of Australia, which added 0.8%, and National Australia Bank that climbed 0.7%.
Insurers lifted the sub-index as well, with QBE Insurance up 1.4%, while Insurance Australia Group climbed 1%.
Energy stocks rose 0.5%, as oil prices climbed while supplies from the Gulf remained constrained.
Oil and gas producers Woodside Energy and Santos added 0.3% and 0.8%, respectively.
Technology stocks fell 1.3%, in line with Wall Street’s overnight drop as investors fretted over the prospects of a war-induced economic stagflation.
WiseTech Global dropped 2.8% and Xero slipped 1.6%.
New Zealand’s benchmark S&P/NZX 50 index rose 0.8% to 13,194.21.
Comments