Australia: Financials, tech boost shares to two-month high

AUSTRALIAN shares hit their highest level in around two months on Thursday, tracking global sentiment on upbeat economic data and US corporate earnings, with gains from banking and technology stocks countering losses from the resources sector.

The S&P/ASX 200 index was up 0.7 per cent at 7021.1, as of 0030 GMT, scaling to its highest since June 9. The benchmark closed 0.3 per cent lower on Wednesday.

Risk appetite across geographies improved after economic data from the United States indicated easing of supply bottlenecks and price pressures.

Geopolitical tensions soothed after US House of Representatives Nancy Pelosi wrapped up a brief visit to Taiwan, further supporting investor confidence.

Elsewhere, Japan’s Nikkei rose 0.9 per cent, while S&P 500 E-minis futures fell 0.05 per cent.

Domestic technology stocks led the gains in the benchmark, adding more than 2 per cent as they tracked an overnight rally on Wall Street.

Sector majors ASX-listed shares of Block Inc soared more than 10 per cent, while Xero climbed 2.8 per cent.

Financials added 1 per cent with all of the “Big Four” banks trading in positive territory.

Commonwealth Bank of Australia raised its home loan variable interest rates by 50 basis points per annum, matching the central bank’s rate hike earlier this week.

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The miners and mining sub-index inched lower with heavyweight BHP Group, Rio Tinto and Fortescue Metals Group shedding between 0.7 per cent to 1.6 per cent.

Energy stocks slumped more than 1 per cent, after oil prices slid overnight following US data that showed crude and stockpiles unexpectedly surged last week.

Heavyweights Santos and Woodside Energy Group fell 0.9 per cent and 1.7 per cent respectively.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.6 per cent to 11,774.81. REUTERS