Australia: Shares end higher with Russia-Ukraine stand-off in focus

[BENGALURU] Australia shares closed higher on Wednesday (Feb 23), lifted by modest gains in mining and healthcare stocks, as most sectors recouped losses after investors appeared to show scant response to developments in the Ukraine-Russia stand-off.

The S&P/ASX 200 index ended 0.6 per cent higher at 7,205.70.

The benchmark closed 1 per cent lower on Tuesday.

Australian Prime Minister Scott Morrison announced the first tranche of sanctions on Russia on Wednesday after Moscow ordered deployment of troops into 2 breakaway regions of Ukraine, marking Australia's entry into the longstanding geopolitical crisis.

Most sectors were caught in a sell-off on Tuesday amid heightened Russia-Ukraine uncertainty.

Healthcare stocks were the biggest boost to the benchmark with a 1.2 per cent jump. Sector heavyweights Cochlear and CSL gained 5.1 per cent and 0.7 per cent, respectively.

Mining shares followed suit to gain 0.8 per cent, with BHP Group climbing 0.6 per cent while Rio Tinto gained 1.2 per cent.

"Investors are not shy about moving more cash while the uncertainty continues and might continue to be a little jittery in the coming weeks," said Dale Raynes, an associate director at CPS Capital commenting on the market's volatility.

Raynes said uncertainty in the past few weeks led to the build-up of growing tensions between Russia and Ukraine. "The new sanctions don't come as a surprise to investors," he added.

Australia gold stocks were the biggest drag to the benchmark, falling 1.8 per cent to break their 4-day winning streak.

Newcrest Mining, the country's biggest gold miner, slid 2.1 per cent as bullion prices were flat after safe-haven demand was offset by a rise in US Treasury yields.

Among other sectors, technology and financial stocks climbed 2.2 per cent and 0.3 per cent, respectively.

Across the border, the New Zealand dollar strengthened after the Reserve Bank of New Zealand raised interest rates back to pre-pandemic levels, signalling further tightening to counter inflationary risks.

New Zealand's benchmark S&P/NZX 50 index gained 0.2 per cent to finish the session at 12,134.42. REUTERS