Australia: Shares extend gains as financials, miners advance

AUSTRALIAN shares jumped on Monday, with heavyweight financials leading the gains as investors shrugged off recession fears amid looming rate hikes, while strong iron ore prices boosted miners.

The S&P/ASX 200 index rose 1.5 per cent to 6,676.5 by 0106 GMT, extending gains to a third session. Investors also took cues from Friday’s strong gains in global stocks, as a recent slide in commodity prices eased worries about soaring inflation and the rate hike outlook.

Financials advanced as much as 2 per cent to their highest since June 14 and were among the top gainers on the benchmark index, with the “big four” banks climbing between 2 per cent and 3 per cent. 

Miners jumped 1.9 per cent as iron ore prices rose on expectation of a recovery in demand after Chinese President Xi Jinping pledged to take more effective measures to achieve the country’s economic and social development goals. 

Sector leaders BHP Group, Rio Tinto and Fortescue added between 1 per cent and 3.5 per cent.

Technology stocks tracked Wall Street higher, rising 1.1 per cent.

ASX-listed shares of Block climbed 3.2 per cent, while software firm Xero added 1.1 per cent. 

Limiting the benchmark index’s gains, gold stocks fell 6.9 per cent to their lowest since March 2020, as heavyweight Evolution Mining tumbled 20.4 per cent after cutting its production outlook.

The company now expects 2022 gold production to be around 640,000 ounces, well below its previous guidance of 700-760 thousand ounces.

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Australia: Shares slip as recession worries weigh on commodities

Shares of Suncorp Group rose 3.3 per cent after the country’s second-largest insurer said it was conducting a strategic review of its banking operations.

Shares of Link Administration advanced 1.9 per cent even as Canadian cloud-based software company Dye & Durham Ltd lowered its takeover proposal, while PEXA group climbed 4.9 per cent. 

New Zealand’s benchmark S&P/NZX 50 index rose 1.4 per cent to 10,960.3. REUTERS