Australia: Shares climb as Middle East fears cool; NZ flat

[BENGALURU] Australian shares rose on Tuesday, led by gains in financial and healthcare stocks, as an absence of a further escalation in US-Iran tensions revived investor appetite for riskier assets.

The S&P/ASX 200 index closed up 1.4 per cent, or 90.70 points, to 6,826.40, after ending flat on Monday.

"In the instant gratification world we live in, a lack of immediate action by Iran has, in fact, seen the haven momentum wane overnight," Jeffrey Halley, a senior market analyst for the Asia-Pacific at Oanda, said in a note to clients.

Long-time foes Teheran and Washington have been in a war of words since Friday, when Iranian commander Qassem Soleimani was killed in a US drone strike, prompting fears of a broader regional conflict.

The financials sub-index gained 1.5 per cent to a more than two-week closing high, with the "Big Four" Australian banks jumping between 1.2 per cent and 1.8 per cent.

Third-largest lender National Australia Bank Ltd added 1.4 per cent, while Australia and New Zealand Banking Group Ltd rose 1.3 per cent.

CSL Ltd ended up 2.4 per cent as Morgan Stanley said the drugmaker has the "most positive business momentum" in the healthcare sector for the year.

Buy-now-pay-later firm Sezzle Inc surged 41.9 per cent, after the US-based firm appeared upbeat on expectations of a successful outcome for its lending licence application in California.

Bucking the trend, the gold index retreated 2.1 per cent as a rest in Middle East tensions dented bullion prices and safe-haven appeal.

Gold miner Resolute Mining Ltd fell 3.9 per cent and was the worst performer on the ASX benchmark, while Regis Resources lost 3.6 per cent.

Property manager Ingenia Communities Group declined 3.8 per cent after it flagged lower fiscal 2020 earnings growth due to the impact of the Australian bushfires on tourism.

In neighbouring New Zealand, the benchmark S&P/NZX 50 index ended little changed at 11,627.32.

Utilities firm Meridian Energy Ltd gained 3 per cent, while Auckland International Airport Ltd lost 1.5 per cent.

REUTERS