Australia: Shares hit one-month high after Federal Reserve hike, tech stocks shine
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[BENGALURU] Australian shares jumped to a one-month high on Thursday, led by technology and mining stocks, as global markets advanced after the US Federal Reserve raised interest rates as expected.
The S&P/ASX 200 index advanced as much as 1.7 per cent to 7,296.80, hitting its highest since Feb 17, and extending gains after Wednesday's 1.1 per cent jump.
The Fed announced a quarter percentage point increase in the overnight federal funds rate, lifting that key benchmark from its near-zero level, and laid out an aggressive plan for further increases to combat inflation.
Hawkish shifts by the central banks in China and Europe, and now the Fed, add to the risk of an earlier start to a Reserve Bank of Australia lift-off well before its implied 2023 central scenario, RBC analysts said in a note.
In Australia, tech stocks surged as much as 5.8 per cent, tracking their US peers. Block Inc's Australian shares jumped 10.8 per cent and WiseTech Global added 6.2 per cent.
Miners advanced nearly 2 per cent on robust iron ore prices, with heavyweights BHP Group, Fortescue Metals and Rio Tinto up between 1.3 per cent and 4.3 per cent.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Financials leapt 1.6 per cent, with the 'big four banks' rising between 0.6 per cent and 1.5 per cent, while healthcare stocks climbed 0.71 per cent, with CSL up 0.6 per cent.
Bullion prices were steady, helping gold miners rise nearly 1 per cent. Newcrest Mining, the country's largest gold miner, was almost flat.
Energy stocks slipped 0.2 per cent, weighed down by a dip in oil prices. Heavyweights Woodside Petroleum and Santos dropped nearly 1 per cent each.
In other news, Australian employment sped past expectations in February as activity recovered surprisingly quickly from an Omicron outbreak, driving unemployment down to lows not seen since 2008 and adding to pressure for an early rate hike.
New Zealand's benchmark S&P/NZX 50 index gained 1.5 per cent to 12,050.95 after data showed gross domestic product rose 3 per cent in the fourth quarter. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
