Australia: Shares climb 1% on banking, tech boost
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AUSTRALIAN equities rose more than 1 per cent on Tuesday (Oct 18), as banking and technology stocks outperformed the index after Britain reversed course on an economic plan, while miner Rio Tinto traded higher despite tempering its annual iron ore shipments.
The S&P/ASX 200 index was up 1.2 per cent at 6,743 points, as of 12.05 am GMT. The benchmark closed 1.4 per cent lower on Monday.
The mining sub-index gained 1.2 per cent, with BHP Group and Fortescue Metals Group each advancing more than 1 per cent.
Shares of Rio Tinto climbed 0.6 per cent even as the miner downgraded its forecast for shipments after its third-quarter iron ore deliveries fell amid weak global demand, particularly in top metals consumer China.
Lifting sentiment, Rio said in a separate statement it would “modernise” a nearly 50-year-old agreement with Wright Prospecting to develop the Rhodes Ridge iron ore project.
Gold miner St Barbara dropped to hit its lowest level in seven years after it slashed its production outlook for the year.
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The Reserve Bank of Australia expects to raise interest rates further over the coming months, its deputy governor said, adding the bank can achieve a similar rise in rates to its global peers through smaller hikes.
Australian markets tracked Wall Street’s overnight rally after a financial policy reversal in Britain spurred risk appetite in investors.
Financials led gains on the bourse with a 1.6 per cent jump. Australia’s “Big Four” banks rose between 1.4 per cent and 2 per cent.
Data solutions company Hub24 posted its biggest intraday jump in 2-1/2 years after a strong quarterly update.
Tech stocks advanced nearly 3 per cent to jump most since Oct 5.
Shares of Tyro Payments rose 3.2 per cent after the payment terminals firm confirmed it was approached by Westpac Banking, among others, for a potential takeover.
New Zealand’s benchmark S&P/NZX 50 index rose 0.8 per cent to 10,876.82 points.
The country’s annual inflation accelerated by 7.2 per cent in the third quarter, exceeding expectations and just below three-decade highs. REUTERS
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