Australia: Shares gain on mining, energy boost

AUSTRALIAN shares rose on Wednesday, led by the gains in heavyweight mining and energy sectors on a rebound in commodity prices, a day after the country’s central bank delivered a modest interest rate hike.

The S&P/ASX 200 index jumped 0.4 per cent to 7,002.4. The benchmark rose 1.7 per cent on Tuesday.

Wall Street closed down overnight for a second straight session, after positive jobs data dampened hopes the US Federal Reserve would back down from its aggressive rate hike pace.

Back in Sydney, miners rose 2.1 per cent after iron ore prices rebounded on Tuesday. BHP Group, Fortescue Metals Group and Rio Tinto rose between 1 per cent and 1.5 per cent.

Rio Tinto said two key investors in Canada’s Turquoise Hill Resources, which it is trying to acquire, agreed to withhold their votes at a meeting to decide on the US$3.3 billion offer.

Energy stocks also rose 1.4 per cent, hitting their highest since January 2020, after oil prices rose on hopes of China reopening from strict Covid-19 curbs.

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Woodside Energy rose 2.5 per cent, while Santos gained 1.3 per cent.

On Tuesday, the Reserve Bank of Australia raised its cash rate by 25 basis points to a nine-year high of 2.85 per cent and revised up its inflation outlook, flagging further tightening ahead. Financial stocks were last up about 0.4 per cent in choppy trade, with the country’s “Big Four” banks rising between 0.1 per cent and 0.3 per cent Local biotech major CSL announced a deal with Arctus Therapeutics to gain access to the US firm’s mRNA vaccine technology. The stock was last down 0.03 per cent. New Zealand’s benchmark S&P/NZX 50 index was down 0.4 per cent at 11,271.26 in early trade. The Reserve Bank of New Zealand said the country’s financial system was resilient as a whole, but the rising interest rate environment may pose a challenge to some households and businesses. REUTERS