Australia: Shares flat as tech stocks track Wall Street lower

[BENGALURU] Australian shares traded flat early Thursday, as gains in the energy and healthcare sectors were offset by losses among technology stocks that tracked their Wall Street peers lower.

The S&P/ASX 200 index was flat at 6,778.8, as of 2323 GMT. The benchmark closed 0.5 per cent higher on Wednesday.

The three main US indexes fell in overnight trade as optimism about the economic recovery by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen was unable to halt a decline in technology shares for a second straight day.

Nikkei futures were up 0.04 per cent, S&P 500 E-minis futures rose 0.14 per cent and the yield on benchmark 10-year Treasury notes rose to 1.6137 per cent.

Energy stocks rose 0.9% as oil prices jumped after a ship ran aground in the Suez Canal, potentially tying up global crude shipments.

Gas explorers Woodside Petroleum and Santos advanced 1.3 per cent and 2.4 per cent, respectively.

Export-reliant healthcare stocks extended gains as the Australian dollar weakened. A weaker local currency helps earnings of companies earning in US dollars.

Drug developer CSL and diagnostic services provider Sonic Healthcare gained 0.4 per cent and 1.9 per cent, respectively.

Australian tech stocks dropped 1.4 per cent, with buy-now-pay-later co Afterpay and artificial intelligence developer Appen falling 2.9 per cent and 1.9 per cent, respectively.

The mining sub-index was trading slightly lower, with global miners BHP Group and Rio Tinto losing 0.7 per cent and 0.9 per cent, respectively.

Meanwhile, exchange operator Cboe Global Markets Inc said on Thursday it would acquire the operator of Chi-X Australia, the country's second-largest securities exchange and the only competitor to ASX.

Shares of ASX Ltd fell as much as 1.6 per cent in early trade.

New Zealand's benchmark S&P/NZX 50 index edged up 0.3 per cent, helped by gains among industrial and tech stocks.

REUTERS