Australia: Shares hit near 3-week high on banks, tech boost

AUSTRALIAN stocks rose to a nearly three-week high on Wednesday, buoyed by banking and technology shares, as investors found comfort in the central bank’s surprise move to temper the pace of its interest rate hikes.

The S&P/ASX 200 index was up 1.76 per cent at 6,815.5 points, as of 0001 GMT. The benchmark settled 3.8 per cent higher on Tuesday.

The Reserve Bank of Australia on Tuesday surprised markets with a smaller-than-expected interest rate hike of 25 basis points, saying rates had already risen substantially, but added that further tightening would still be needed. Interest rate-sensitive technology stocks advanced 3.9 per cent and tracked a rally on tech-heavy Nasdaq index.

Software firm Novonix jumped 6.6 per cent and Megaport gained 5.2 per cent, while the ASX-listed shares of Block Inc led the gains with a 9.3 per cent jump. 

Financials advanced 2.2 per cent, with the “Big Four” banks gaining more than 2 per cent each.

Among individual stocks, Fortescue Metals Group rose 2.2 per cent after its green power arm, Fortescue Future Industries (FFI), partnered with energy infrastructure developer Tree Energy Solutions to develop a hydrogen energy import facility in Germany.

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Australia: Shares post best day in more than two years after RBA surprise

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Link Administration Holdings jumped nearly 5 per cent after receiving an A$1.27 billion (S$1.18 billion) bid from Canada’s Dye & Durham (D&D) for the share registry firm’s corporate markets and banking segments, days after D&D’s takeover offer for the entire company fell through. 

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index trades 1.19 per cent higher at 11,090 points.

The Reserve Bank of New Zealand is expected to deliver its fifth half-point interest rate hike later in the day and is expected do the same in November in an attempt to stem the tide of rising inflation, a Reuters poll of economists predicted. REUTERS