Australia: Financials lift shares higher; James Hardie falls on outlook cut

AUSTRALIAN shares ticked higher on Tuesday, eyeing a third straight session of gains led by financial stocks, supported by sustained optimism about the US Federal Reserve considering easing off on its aggressive rate-hike stance.

The S&P/ASX 200 index was up about 0.2 per cent at 6,945 by 2332 GMT. The benchmark ended 0.6 per cent higher on Monday.

Overnight, Wall Street finished strongly higher ahead of midterm elections that would decide the fate of US Congress, with data indicating that rapid rate hikes have helped cool down the economy, raising hopes of a slowdown in aggressive tightening.

In Sydney, financials led gains on the benchmark, advancing as much as 0.8 per cent, lifted by all the “Big Four” banks.

Westpac Banking Corp added up to 1 per cent, a day after posting slightly lower annual cash earnings, while No. 3 lender National Australia Bank was up as much as 0.9 per cent, a day ahead of announcing its fiscal 2022 results.

Mining stocks were up 0.7 per cent, even as iron ore prices fell on China sticking to its Covid-19 curbs. BHP Group, Fortescue Metals, and Rio Tinto added between 0.4 per cent and 0.7 per cent.

James Hardie Industries, however, slumped nearly 15 per cent after the world’s biggest fibre cement maker slashed its earnings forecast for FY23, citing a decline in volumes across all three key regions.

It was the second-biggest loser in the benchmark, marking its worst intraday fall since March 2020.

In New Zealand, the benchmark S&P/NZX 50 index was down 0.2 per cent at 11,268.4.

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Australia: Shares close higher on mining, energy boost

Separately, the Reserve Bank of New Zealand’s (RBNZ) governor, Adrian Orr, was reappointed for another five-year term starting in late March next year.

The central bank is expected to release its review of monetary policy over the past five years on Thursday, along with a couple of independent reviews of its decisions. REUTERS