The Business Times

Australia: Mining, energy boost lift shares by nearly 1%

Published Thu, Jul 22, 2021 · 10:19 AM

[BENGALURU] Australian shares climbed around 1 per cent on Thursday, with BHP Group leading the charge among mining stocks after the global miner signed a nickel supply deal with US electric carmaker Tesla.

The S&P/ASX 200 index was up 0.7 per cent at 7,360.3 just 30 minutes into trade, with energy stocks being the biggest gainers.

Wall Street ended higher for a second session, with investors switching focus to corporate earnings. Elsewhere, the Nikkei rose 0.6 per cent.

Mining stocks jumped 2.1 per cent, with strong gains by Iluka Resources and Coronado Global Resources.

BHP Group jumped around 3 per cent after it signed the deal with Tesla, and will work with the carmaker on lowering carbon emissions in the battery supply chain.

Last month, Tesla had said it expects to spend more than US$1 billion a year on battery raw materials from Australia given the country's reliable mining industry and responsible production practices.

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Newcrest Mining edged 0.2 per cent higher after its flagship Cadia mine beat its annual gold production forecast.

Northern Star Resources added nearly 2 per cent after the company announced sale of its Kundana operations in Western Australia to Evolution Mining for A$400 million (S$401.1 million).

Energy stocks climbed more than 2 per cent, led by Santos, up 2.89 per cent.

Santos advanced after the gas producer hiked the bottom-end of its annual production outlook and reported a 37 per cent jump in quarterly revenue.

Financials advanced 0.8 per cent, with all the "Big Four" banks trading in the black.

Technology stocks added 0.7 per cent, led by Computershare, up 2.95 per cent, followed by Megaport, gaining 2.53 per cent.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.17 per cent to 12,731.30.

The top percentage gainers on the benchmark were EBOS Group, up 1.05 per cent, followed by Heartland Group Holdings, gaining 1 per cent, and Investore Property rising 0.99 per cent.

REUTERS

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