Australia: Shares jump on mining boost; NAB falls on bleak outlook

AUSTRALIAN shares advanced for a fourth straight session on Wednesday, led by mining stocks as iron ore prices surged on hopes of China easing its Covid-19 curbs, while National Australia Bank slumped on dire lending outlook. The S&P/ASX 200 index rose 0.5 per cent to 6,996.4 by 2343 GMT. The benchmark ended 0.4 per cent higher on Tuesday.

Heavyweight miners were the top boosts to the benchmark, jumping 2.2 per cent on higher iron ore prices.

Dalian iron ore climbed to its highest in two weeks on Tuesday, supported by persistent hopes that China would ease its stringent curbs, despite worries about a surge in new coronavirus cases in some cities.

Shares of Rio Tinto, BHP Group, and Fortescue Metals rose between 2.6 per cent and 1.4 per cent. Financials rose 0.2 per cent, with three of the ‘Big Four’ banks advancing as much as 0.6 per cent. National Australia Bank, the country’s second-largest lender, slumped as much as 2.9 per cent after it warned of slowing lending volume on impact from higher interest rates. The bank’s stock was among top drags on the benchmark.

Among losers, energy stocks dropped about 1.7 per cent as oil prices fell on choppy trading over demand worries from top crude importer China. Index majors Woodside Energy and Santos lost more than 1 per cent each.

Shares of Whitehaven Coal fell as much as 8.6 per cent, becoming the second-biggest loser in the index, after it cut its output guidance on New South Wales floods.

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Meanwhile, Medibank Private said customer data stolen by hackers had been posted on a dark web forum. Shares were up as much as 2 per cent.

Investors will also be looking at the midterm elections in the United States, with crucial inflation data due on Thursday also at the top of their focus list.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.6 per cent to 11,220.6. REUTERS