Australia: Shares jump as Commonwealth Bank, tech stocks soar

[BENGALURU] Australian shares closed more than 1 per cent higher on Wednesday (Feb 9), as top lender Commonwealth Bank of Australia soared on a forecast-beating surge in half-year profit and investor services provider Computershare led a rally in tech stocks.

The benchmark S&P/ASX 200 index rose 1.1 per cent to 7,268.10 after Tuesday's 1.1 per cent gain.

Shares of Commonwealth Bank of Australia jumped 5.6 per cent to a 3-week closing high and marked their best session in nearly 2 years, after a boom in home loans drove first-half profit above estimates.

That helped financials gain 2.6 per cent in their best day in more than 4 months. The other 3 banks among the "Big Four" firmed between 1.7 per cent and 2.4 per cent.

Technology stocks were the top percentage gainers in the benchmark, adding 4.2 per cent in their best session in 6 months, driven by an 11.2 per cent jump in Computershare after the company reported strong half-year earnings late on Tuesday.

Xero, WiseTech Global and ASX-listed shares of Block advanced between 1.4 per cent and 4.7 per cent, following a strong overnight finish by the tech-heavy Nasdaq.

Meanwhile, a measure of Australian consumer sentiment fell for a third month in February as rising costs of living undermined finances amid prospects of higher interest rates.

"We are going into a low-growth environment, where it is very difficult for central banks and governments to find balance between interest rates and inflation," said Brad Smoling, managing director at Smoling Stockbroking.

Referring to the US inflation report due on Thursday, he said, "it could be a catalyst for another downward leg of selling or we could see a substantial rally right across the board."

Among other sectors, miners lost 0.6 per cent after Chinese iron ore futures plunged more than 5 per cent. BHP Group shed 1.7 per cent and Mineral Resources dropped 8.9 per cent to its worst day since September 2020.

New Zealand's benchmark S&P/NZX 50 index rose 0.9 per cent to 12,433.95, its highest close in more than 2 weeks. REUTERS