Australia: Shares end higher as banks, tech gain

AUSTRALIAN shares ended higher on Thursday (Jun 23) as gains in financial and technology stocks outweighed losses in mining and energy sectors, while investors assessed the risk of a global recession amid a string of rates hikes to stamp out inflation.

The S&P/ASX 200 index ended 0.31 per cent higher at 6,528.4.

The index has closed higher barely for the fifth time this month, in what is turning out to be one of the toughest period for equities this year as they come under heavy selling pressure on fears of a global economic turmoil.

Financials advanced 0.73 per cent, and were among the top gainers on the benchmark index, with the “Big Four” banks climbing between 0.2 and 1.1 per cent.

“Banks are doing better because the money has to go somewhere as miners are taking a big hit ... banks are seen as a bit safer,” Deep Data Analytics chief executive officer Mathan Somasundaram said.

“In a rising rate environment, property trust will struggle and that means demand for bank products will continue to slow down from here,” he added.

Tech stocks gained 1.52 per cent, with ASX-listed shares of Block rising 4.7 per cent to hit their highest in a week.

Local miners shed 1.94 per cent, limiting the gains, as iron ore futures slipped on the back of rising steel inventories in top producer China.

Mining behemoths BHP Group and Rio Tinto fell 1.3 per cent and nearly 2 per cent respectively.

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Energy stocks slipped 2.1 per cent on weakness in oil prices, with Woodside Energy Group falling 2.6 per cent and Santos 2 per cent.

In New Zealand, the benchmark S&P/NZX 50 index closed 1.3 per cent higher at 10,813.92. REUTERS