Australia: Shares ends at over 3-week high on tech, mining boost

AUSTRALIAN shares ended at a more than 3-week high on Monday (May 30), led by gains in commodity stocks and technology firms tracking a Wall Street rally, though AGL Energy tumbled after shelving its demerger plan.

The S&P/ASX 200 closed 1.5 per cent higher at 7,286.6, its highest since May 6, with all major sub-indexes in the black.

Leading gains, tech stocks rallied 4.6 per cent, a 3-week high after US peers jumped on Friday on optimism about a stable economy on signs of peaking inflation and consumer resiliency.

ASX-listed shares of Block and accounting software producer Xero climbed 10.9 per cent and 5.2 per cent, respectively.

Globally, sentiment was boosted by better-than-expected US April consumer spending data last week indicating that inflation has peaked and China’s easing Covid-19 curbs.

The prospect of an eventual slowdown in the pace of US monetary tightening will likely benefit markets in the near future, said Brad Smoling, managing director at Smoling Stockbroking.

“I am seeing positivity come back into the (Australian) equity market and I think it is going to continue right up until the end of this year.”

Export-reliant miners were also among the top gainers, climbing more than 2.2 per cent on higher iron ore prices.

Sector giants BHP, Rio Tinto and Fortescue Metals Group advanced between 0.3 per cent and 2.8 per cent, respectively.

SEE ALSO

ETFs a useful tool for investors amid market volatility: BT roundtable panellists 

Tokyo: Nikkei closes at over 1-month high on China growth optimism

Asia: Markets extend Wall Street rally as China eases curbs

Financials rose 0.6 per cent, with sector leaders National Australia Bank and Westpac Banking Corp adding 0.5 per cent each.

By contrast, AGL Energy lost 1.7 per cent after the power producer announced the resignation of its chairman and chief executive officer, saying it would not proceed with its planned demerger due to insufficient shareholder support.

New Zealand’s benchmark S&P/NZX 50 ended 0.7 per cent higher at 11,145.5, posting its biggest jump since May 18.

The Reserve Bank of New Zealand’s chief economist Paul Conway told Reuters the bank’s outlook for strongly rising interest rates this year could change, depending on economic indicators. REUTERS