Australia: Financials, energy stocks lead rebound

[SYDNEY] Australian shares rebounded on Friday from previous session's tech-driven sell-off, with financials and energy stocks leading gains, while James Hardie slumped after the world's top fibre cement maker ousted its chief for breaching code of conduct.

The S&P/ASX 200 index closed 1.3 per cent higher at 7,453.3, but was largely flat this week. The benchmark index tumbled 2.7 per cent on Thursday.

Global markets attempted to recover on Friday from the previous session's battering, sparked by the potential for sooner-than-expected rate hikes by the US Federal Reserve. The sell-off saw investors dump shares of companies that don't do well in a higher-rate environment such as the technology sector.

"After the heavy sell-off yesterday, the paring back of some losses may seem to be playing out," said Yeap Jun Rong, market strategist at retail trading platform IG.

Financial stocks rallied 1.9 per cent after having slumped 2.3 per cent on Thursday, led by the country's four largest lenders climbing between 1.3 per cent and 2.7 per cent.

Energy stocks jumped 2.2 per cent as crude prices inched up on supply worries amid the political unrest in Kazakhstan coinciding with a drop in production from Libya.

The tech sector rose 1.1 per cent, despite a poor show overnight on the Nasdaq, recovering slightly from the previous session's beating where it saw its worst day since March 2020. Buy-now-pay-later leader Afterpay Ltd added 3 per cent.

James Hardie Industries was the biggest drag in the benchmark as shares sank 4.1 per cent. The company said chief executive officer Jack Truong was fired on his work-related interactions over the last several months "extensively and materially" breaching the company's code of conduct.

Meanwhile, the takeover battle for Australian Pharmaceutical Industries ended as it accepted Wesfarmers' US$546.9 million bid after top grocer Woolworths Group, which had made a superior offer, backed out.

Australian Pharmaceutical, which is not a part of the benchmark index, plunged 12.4 per cent, while Wesfarmers advanced 0.7 per cent.

New Zealand's benchmark S&P/NZX 50 index edged down 0.1 per cent to 12,970.65.

REUTERS