Australia: Financials, energy stocks lift shares higher; China’s Covid-19 woes hit miners

AUSTRALIAN shares rebounded on Tuesday, after sharp losses in the previous session, powered by gains in financials and energy stocks, though weakness in underlying prices over renewed Covid-19 curbs in China dented local miners.

The S&P/ASX 200 index rose 0.5 per cent to 6,633.9 by 0045 GMT. The benchmark ended 1.1 per cent lower on Monday.

Leading gains among sectors, financials, one of the top-weighted sectors on the benchmark, rose as much as 1.3 per cent to hit their highest since June 14.

All the ‘big four’ banks gained between 0.4 per cent and 1.5 per cent.

Energy stocks climbed as much as 1.6 per cent, even as oil prices fell. Index majors Woodside Energy and Santos strengthened 1.2 per cent and 0.2 per cent, respectively.

Technology sub-index, however, was a dull spot sliding as much as 0.7 per cent.

Growth stocks tracked overnight Wall Street weakness, as investors remained cautious over crucial inflation data that could set the tone for US Federal Reserve’s monetary policy tightening.

Sector leaders Life360 and ASX-listed shares of Block dropped 4.7 per cent and 3.1 per cent, respectively. Miners followed suit, tumbling 0.9 per cent, after iron ore prices took a hit on fresh coronavirus restrictions in the world’s top steel producer China.

Parenti Global, Sayona Mining and 29 Metals were the top laggards on the sub-index, losing between 3 per cent and 7 per cent.

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Australia: Miners drag shares to their worst day in over a week

New Zealand’s benchmark S&P/NZX 50 index was largely unchanged, with investors focused on the central bank’s rate decision due on Wednesday.

The Reserve Bank of New Zealand will likely deliver a third successive half-point interest rate hike this week in its most aggressive policy tightening on record, a Reuters poll found.

Shares of Telecom firm Spark New Zealand jump as much as 2.8 per cent, after the company said it would sell a 70 per cent stake in its towers business for NZ$900 million (S$773.5 million). REUTERS