Australia: Banks, miners drive shares 1% higher

[BENGALURU] Australian shares rose 1 per cent on Wednesday, taking their cue from a strong overnight session on Wall Street, while domestic miners and banks rebounded from losses recorded a day earlier to top gains in the benchmark index.

The S&P/ASX 200 index was up 1 per cent at 7,395.8, as of 0002 GMT. The benchmark closed 0.6 per cent lower on Tuesday.

Elsewhere, S&P 500 E-minis futures fell 0.1 per cent.

Major indexes on Wall Street surged to record highs overnight as a strong earnings season continued to lift sentiment for equities, while investors were looking ahead to the outcome of a critical Federal Reserve meeting.

Miners, which had logged losses in four of five sessions, gained as much as 1.6 per cent to post their biggest intraday jump since Oct 25.

Fortescue Metals Group rose up to 3.2 per cent and was on track to deliver its best session in more than three weeks, while peers Rio Tinto and BHP Group advanced 0.3 per cent and 0.9 per cent, respectively.

Heavyweight financials gained more than 1 per cent, with the "Big Four" banks rising between 0.7 per cent and 1.2 per cent.

Financial services provider AMP said it had agreed to sell its remaining 19 per cent stake in Resolution Life's Australia business to the British company, marking the wealth manager's exit from life insurance.

Shares of AMP climbed more than 7 per cent to notch their biggest one-day jump since late-May.

Australia's central bank took a major step on Tuesday towards unwinding extraordinary pandemic stimulus policies by abandoning an ultra-low target for bond yields and opening the door for an earlier hike in cash rates.

New Zealand's benchmark S&P/NZX 50 index was up 0.4 per cent at 13,047.51. Napier Port Holdings and Tourism Holdings were among the top gainers on the bourse.

The central bank said the country's financial system remains resilient despite the challenges of Covid-19, but warned growing global inflationary risks could force a sudden tightening in conditions.

REUTERS