Australia: Shares jump on boost from financials, energy stocks

AUSTRALIAN shares rose marginally on Friday (Nov 18), with banks leading the gains, even as hawkish comments from US Federal Reserve officials and a persisting tight labour market raised fears of a prolonged monetary policy tightening.

The S&P/ASX 200 index was up 0.2 per cent at 7,147.50 by 2358 GMT. The benchmark ended 0.2 per cent higher on Thursday. It was, however, set to end the week 0.2 per cent lower, snapping a three-week gaining streak.

Hawkish comments from Fed officials to continue raising rates by at least another full percentage point as data indicates tightness in the labour market cast a shadow on hopes of a pivot in Fed’s aggressive stance.

Data also showed Australia’s net employment rose better than expected in October, raising speculation that the Reserve Bank of Australia might continue with rate hikes.

Miners were down 0.5 per cent, even as iron ore prices inched higher on hopes that China will roll out more measures to support its economy.

Copper-gold miner OZ Minerals jumped 3.8 per cent on receiving a hiked buyout offer of A$9.6 billion (S$8.8 billion) from global miner BHP Group.

Also, Rio Tinto edged down after it said it will proceed with acquiring the remaining 49 per cent in Turquoise Hill Resources for US$3.3 billion.

Financials jumped 0.4 per cent with the “Big Four” banks gaining between 0.1 per cent and 1 per cent.

Shares of Perpetual fell 20.7 per cent this week, as an Australian court on Thursday said fund manager Pendal Group could enforce Perpetual to honour its A$2.34 billion takeover deal.

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Australia: Shares snap losing streak as geopolitical tensions ease

Local energy stocks gained 0.1 per cent despite oil prices falling amid demand concerns over rising Covid-19 cases in China.

Santos gained 0.3 per cent, while Woodside Energy fell 0.2 per cent.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.2 per cent to 11,319.58.

Fonterra Co-operative Group jumped 0.8 per cent after it said it was selling its dairy operations in Chile to Peru’s Gloria Foods for US$641.4 million. REUTERS