Australia: Shares extend gains as financials shine on CBA buyback plan

[BENGALURU] Australia stocks extended gains on Wednesday, helped by strength in the financial sector as shares of the country's largest lender, Commonwealth Bank of Australia, soared on announcing profit growth and a A$2 billion share buyback plan.

The S&P/ASX 200 index was up 0.5 per cent at 7,220.2, as of 2344 GMT. The benchmark closed 1.1 per cent firmer on Tuesday.

Commonwealth Bank of Australia added as much as 5.9 per cent in its best intraday session since May 2020 on announcing its share buyback plan, in addition to A$3 billion in dividends as the bank saw strong growth in lending, which cushioned the blow from stiff competition.

CBA's strong performance helped the financial index post a 2.2 per cent gain, hitting a near three-week peak, with the other three of the "Big Four" banks climbing between 1.4 per cent and 2.4 per cent.

Technology stocks rose 1.8 per cent, led by Computershare , which reported strong earnings after markets closed on Tuesday, surging 11.9 per cent.

A strong finish for the sector on Wall Street also aided risk sentiment, with Xero and Wisetech Global gaining about 1 per cent each.

Energy stocks snapped a three-day winning streak, slumping 1.9 per cent as oil prices dived amid talks between the United States and Iran, which might result in sanctions being lifted and Iranian oil entering global supply.

Santos and Woodside Petroleum gave up 2.5 per cent and 2 per cent, respectively.

Mineral Resources dived as much as 13 per cent in its worst session in more than nine years after the lithium and iron ore miner swung to a half-year loss, while also separately announcing two lithium deals.

New Zealand's benchmark S&P/NZX 50 index dipped 0.1 per cent lower to 12,308.74. REUTERS