Australia: Shares close slightly higher

[SYDNEY] Australian shares closed slightly higher on Monday, as upbeat comments from Treasurer Josh Frydenberg on the economic prospects for 2022 offset some worries surrounding the Omicron coronavirus variant.

The S&P/ASX 200 index closed 0.05 per cent higher at 7,245.1, with gains in the energy and gold sectors offsetting losses in technology and mining. The benchmark rose 0.2 per cent on Friday.

Frydenberg on Sunday said Australia will raise its 2022 economic growth forecast at the mid-year budget review, adding that it is too early to estimate the impact from Omicron on the economic outlook.

Rising cases in Sydney and other cities have forced some regions to tighten their domestic border controls, with the country reporting its first community transmission of Omicron on Friday.

Henry Jennings, senior investment analyst at Marcustoday Financial newsletter, said: "There is a little bit of risk-off sentiment at the moment ... Traders are just happy to take some profits and set up shop for the year."

Investors were also awaiting the Reserve Bank of Australia's (RBA) meeting on Tuesday, where the cash rate is expected to be held at 0.10 per cent.

Gold explorers rose 1.9 per cent, benefiting from a jump in bullion prices, with Northern Star Resources jumping 3.2 per cent to its best session in more than three weeks.

Energy stocks also rose, underpinned by firmer oil prices, with Santos and Woodside Petroleum gaining 1.4 per cent and 0.8 per cent, respectively.

Technology stocks dropped 2.2 per cent, with aerial imagery firm Nearmap falling 7.1 per cent to end at its lowest since April 2020.

Afterpay extended losses to close at a six-month low, while peer Zip Co Ltd hit its weakest in more than 18 months, the biggest percentage decliner on the ASX 200.

Heavyweight miners Rio Tinto and BHP Group fell 1.8 per cent and 1.6 per cent respectively.

New Zealand's benchmark S&P/NZX 50 index finished the session 0.6 per cent lower at 12,597.81.

REUTERS