Australia: Shares jump on boost from resources and banking stocks

AUSTRALIAN shares rose more than 1 per cent on Wednesday, as resources stocks jumped on worries over supply crunch and banks advanced on expectations that higher interest rates would boost their profits.

The S&P/ASX 200 index climbed 1.7 per cent to 6,760.1 by 0148 GMT, also helped by Wall Street’s strong gains overnight. The benchmark fell 0.6 per cent on Tuesday. 

Risk sentiment has improved slightly this week as fears of a bigger US interest rate hike to contain soaring inflation eased and robust corporate earnings alleviated concerns about a sharp slowdown in economic growth.

Meanwhile, Australia said it would launch a review of the Reserve Bank of Australia’s inflation target, monetary tools and board structure, amid criticism over the central bank’s handling of interest rate policies.

Miners led gains on the benchmark Australian stock index, rising about 1.6 per cent even as iron ore prices fell in China on demand concerns due to an increase in Covid-19 cases. 

Index heavyweights Rio Tinto, Fortescue Metals Group and BHP Group climbed in a range of 0.9 per cent and 3 per cent.

Financials climbed about 1.4 per cent, with three of the “big four” banks gaining in a range of 1.2 per cent and 3.3 per cent. 

Energy stocks rose in opening deals after oil prices climbed 1 per cent overnight.

However, they pared the gains as Brent prices fell slightly in early Asian trade.

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Australia: Shares subdued in choppy trade; New Zealand down

Santos advanced 0.6 per cent, while Woodside Energy rose 0.5 per cent.

Technology stocks jumped 4.7 per cent to hit their highest level since June 1 after the Nasdaq Composite Index made strong gains overnight.

Xero and Computershare advanced 7.5 per cent and 3.3 per cent, respectively. 

New Zealand’s benchmark S&P/NZX 50 index rose 1.1 per cent to 11,283.6. REUTERS