Australia: Shares gain as commodity stocks boost, New Zealand up

AUSTRALIAN shares rose on Thursday, lifted by mining and gold companies after a sharp rebound in commodity prices, although worries over hot US inflation data and an impending rate hike capped gains.

The S&P/ASX 200 index rose as much as 0.3 per cent to 6640.3 by 0055 GMT. The benchmark rose 0.2 per cent on Wednesday.

The main index has lost more than 11 per cent this year on fears that speedy monetary policy tightening around the world to counter surging inflation would trigger a recession. 

The US Federal Reserve is seen ramping up its battle with 40-year high inflation with a supersized 100 basis points rate hike this month after a grim inflation report showed price pressures accelerating.

Leading gains on Wednesday, export-centric miners advanced as much as 1.3 per cent, snapping from a three-day losing streak, as iron ore prices strengthened on the back of an optimistic China export reading for June.

Mining trio Rio Tinto, BHP Group and Fortescue Metals added between 1 per cent and 2 per cent. 

The gold sub-index gained as much as 1.5 per cent and was set for its best day in one week on strength in bullion.

Sector leaders Northern Star Resources and Newcrest Mining jumped as much as 2.6 per cent and 1.4 per cent, respectively.

Energy stocks climbed as much as 1.1 per cent, with sector majors Woodside Energy and Santos adding 0.3 per cent and 0.9 per cent, respectively.

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Bucking the trend, financials were the top laggard on the benchmark, giving up as much as 0.9 per cent.

Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corp and Australia and New Zealand Banking Group lost between 0.5 per cent and 1.5 per cent.

Lithium developer Lake Resources NL fell 16.3 per cent even as the company refuted a short seller report criticizing partner Lilac Solutions’s extraction technology.

New Zealand’s benchmark S&P/NZX 50 index climbed as much as 0.5 per cent to 11163.5 a day after the country’s central bank hiked its cash rate for the sixth consecutive time. REUTERS