Australia: Shares end week 3% lower with Ukraine crisis in focus

[BENGALURU] Australia shares closed a tumultuous week 3.1 per cent lower as investors stayed away from riskier assets after Russian forces invaded Ukraine, despite a slight gain on Friday (Feb 25) amid harsher Western sanctions imposed against Moscow.

The S&P/ASX 200 index closed 0.1 per cent higher at 6,997.80, after slumping 3 per cent on Thursday. The benchmark posted its worst week since October 2020.

Global markets regained lost ground following a higher finish in Wall Street after US President Joe Biden hit back at Russia with more sanctions.

Australia technology stocks soared 8.1 per cent to mark their best close in more than 10 years.

Australia-listed shares of Block led the rally among technology stocks, climbing 32.5 per cent in their best day, after the payments company posted a better-than-expected quarterly profit on the back of a highly volatile bitcoin market and booming online retail.

Australia also imposed sanctions against Russia, targeting several of its elite citizens and lawmakers.

"Sanctions (on Russia) are relatively benign from our economies, and there weren't any oil sanctions, which could have inflamed the oil price further," said Henry Jennings, senior analyst and portfolio manager at Marcustoday Financial Newsletter.

Jennings said the Australian market is a bit more muted than expected.

A Reuters poll found that the Reserve Bank of Australia (RBA) will raise interest rates for the first time in over a decade in the July to September quarter. The central bank is scheduled to meet on Mar 1.

"Investors are cautious ahead of the weekend - anything could happen in Ukraine and we won't have a chance to respond to it. We also have the RBA meeting due next week," Jennings said.

Domestic gold stocks slid 4 per cent and were the biggest laggards in the index.

Financial stocks lost 1 per cent with the "Big Four" banks sliding between 0.9 per cent and 2.2 per cent. Miners retreated 0.1 per cent.

New Zealand's benchmark S&P/NZX 50 index rose 1.6 per cent to finish the session at 11,923.38. The benchmark lost 1.8 per cent this week. REUTERS