Australia: Shares close higher on mining boost

[BENGALURU] Australian shares closed slightly higher on Thursday, as gains in mining and tech stocks eclipsed losses in gold names, while investors remained cautious ahead of key US inflation data.

The S&P/ASX 200 index settled 0.2 per cent higher at 7,109.70, after Wednesday's 0.1 per cent dip.

Concerns about higher inflation have loomed over global equity markets in recent weeks, and investors now await the monthly US personal consumption report due on Friday to gauge price pressure. A higher reading could revive talk of an early tapering by the US Federal Reserve.

Miners in Australia jumped 1.3 per cent even though Chinese iron ore futures slumped, as gains in other essential metals such as copper were in focus.

"The slight bounce-back in commodities like copper, nickel and zinc overnight boosted the overall mining sector," said Deep Data Analytics chief executive officer Mathan Somasundaram.

The mining trio of Rio Tinto, BHP Group and Fortescue Metals gained between 3.8 per cent and 1.2 per cent.

Tech stocks advanced 1.6 per cent, tracking their Wall Street peers as comments from Fed officials soothed inflation concerns.

Shares of Xero rose 1.7 per cent, extending gains into a second session, while Afterpay climbed 1.2 per cent.

"There has been a slight risk-off trade in the US, which brought bond yields under control, leading to a rise in tech stocks," Mr Somasundaram said.

On the flip side, gold stocks fell 1.2 per cent after bullion prices declined overnight.

Sector heavyweights Newcrest Mining and Northern Star Resources shed 2.3 per cent and 0.4 per cent, respectively.

New Zealand's benchmark S&P/NZX50 fell 0.8 per cent to 12,243.34. Fisher & Paykel Healthcare was the top drag after the medical devices maker did not provide guidance for its fiscal 2022.

REUTERS