Australia: Shares gain on banks, energy stocks boost
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[BENGALURU] Australian shares rose slightly on Tuesday, helped by gains in financial and energy stocks, even as surging Omicron coronavirus cases triggered tighter restrictions in Europe and clouded the outlook for global economic growth.
The S&P/ASX 200 index gained 0.2 per cent to 7,308.5 by 2343 GMT, after closing 0.2 per cent lower on Monday.
While Omicron's rapid spread across Europe forced a lockdown in the Netherlands and could bring tighter measures elsewhere, Australia is pushing to ease curbs despite a predicted surge in infections, hoping inoculations will help keep people out of hospitals.
Heavyweight financials rose 0.4 per cent, benefiting from gains in the so-called "Big Four" banks. Commonwealth Bank of Australia, National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking Group rose between 0.5 per cent and 0.9 per cent.
Magellan Financial Group fell as much as 2.2 per cent to a more than six-year low, adding to its more than 30 per cent dive on Monday after the fund manager lost a major client.
Energy stocks gained 1.2 per cent, rebounding from a sharp drop on Monday, even as oil prices plunged on demand concerns.
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Oil and gas explorer Santos added 1 per cent, while fuel refiner Viva Energy hit its highest since Nov 26 after Jefferies raised its earnings estimates.
Technology stocks dropped 1.1 per cent, tracking the Nasdaq's weaker finish overnight. Buy now, pay later giant Afterpay fell as much as 3.7 per cent to its lowest since Oct 6, 2020.
Major indexes on Wall Street fell more than 1 per cent overnight as investors worried about the Omicron variant potentially undercutting the economic rebound and a critical setback to US President Joe Biden's social-spending bill.
Shares of construction firm CIMIC Group rebounded as much as 2 per cent, a day after reports said the company had not paid wages and other entitlements to more than 100 employees.
CIMIC said the employees were under the care of another company and it was working to ensure that they were compensated.
New Zealand's benchmark S&P/NZX 50 index fell 0.3 per cent to 12,726.26.
REUTERS
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