Australia: Shares end higher as miners, energy stocks ride commodity rally
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[BENGALURU] Australian shares closed higher on Thursday (Mar 24), helped by miners and energy stocks as commodity prices soared after the conflict between Russia and Ukraine showed no signs of abating and increased uncertainty around global supplies.
The S&P/ASX 200 index ended a day of choppy trade 0.1 per cent higher at 7,387.1 points - marking a third straight session of gain.
The metals and mining index rose 1.1 per cent on soaring iron ore and base metal prices. Sector majors Rio Tinto and BHP Group gained 2.1 per cent and 1.8 per cent, respectively, while Fortescue Metals Group fell 0.3 per cent.
Energy stocks jumped nearly 2 per cent, their highest since Mar 7, and gold stocks climbed 1.1 per cent.
Sector heavyweights Woodside Petroleum and Santos added 2.8 per cent and 1.5 per cent, respectively, while Australia's largest gold miner Newcrest Mining advanced 2.2 per cent.
"They (commodity-backed stocks) are doing just enough to offset losses in rest of the market, particularly the tech sector, the healthcare sector, and banks," said Steven Daghlian, market analyst at CommSec.
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Growth stocks and the finance sector took a back seat amid caution over geopolitical and policy concerns, with hawkish comments from the US Federal Reserve adding to the risk-off mood.
Fed policymakers on Wednesday signalled they stood ready to come down aggressively on unacceptably high prices, including the possibility of a 50 basis points rate hike in its net policy meeting.
Technology stocks shed 0.8 per cent after gaining 3.5 per cent in previous session, as they tracked overnight losses on Wall Street.
Financials fell 0.4 per cent, with Australia and New Zealand Banking Group and Macquarie Group losing 0.6 per cent and 1.7 per cent, respectively.
One of the biggest lenders in the country, National Australia Bank announced an additional A$2.5 billion (S$2.54 billion) on market share buy-back, sending its shares 0.2 per cent higher.
New Zealand's benchmark S&P/NZX 50 index ended 0.4 per cent lower at 12,017.6 points. REUTERS
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