Australia: Shares end higher as tech, banks gain, Fed outcome in focus

[BENGALURU] Australian shares closed higher on Wednesday (Mar 16), led by technology and healthcare stocks, as investors globally awaited the outcome of the US Federal Reserve's meeting later in the day.

The S&P/ASX 200 index ended 1.1 per cent higher at 7,175.2 points.

Rising inflationary pressures, geopolitical worries and volatile commodity prices have led to choppy trading sessions since late February, with growth-focused stocks taking much of the beating.

The outcome of the Fed's 2-day meeting later in the day is in focus, where it is expected to raise interest rates by 25 basis points. Traders will also eye projections by the central bank on its bond-buying programme, inflation and the timeline of more rate hikes.

A slightly dovish stance may be adopted by the Fed despite a rate hike, as a pullback in commodity prices have eased some of the price pressures, said Damien Rooney, director of equity sales at Argonaut.

Meanwhile, technology stocks led gains on the Australian benchmark, climbing as much as 3.7 per cent.

"The outperformance of tech stocks might seem startling, at a time of rate hike," said Kunal Sawhney, chief executive of Kalkine Group.

"However, this rise can (be) explained as investors usually pick up high-quality stocks at low prices following a huge sell-off."

Financial stocks rose for a third straight session, hitting their highest since Feb 21. The "Big Four" banks firmed 0.1 to 1.9 per cent.

Energy stocks gained about 0.2 per cent after crude prices rose on persisting Russia-Ukraine tensions. Index majors Woodside Petroleum and Santos rose about 0.2 per cent and 0.6 per cent, respectively.

Miners climbed 0.3 per cent, as iron ore prices rebounded from a 2-week low in China, the world's largest producer of steel.

Travel stocks gained as New Zealand reopened its borders.

Major carrier Qantas Airways added 4.1 per cent.

New Zealand's benchmark S&P/NZX 50 index ended 0.6 per cent higher at 11,847.1. REUTERS