Australia: Shares mark over 14-month closing high on mining, healthcare boost

[BENGALURU] Australian shares finished at their highest level in more than 14 months on Wednesday, buoyed by commodity and healthcare-related stocks, although tech stocks tracked their US peers lower to curb further gains.

The S&P/ASX 200 index rose 0.4 per cent to 7,095.80, its highest close since Feb 21, 2020, and marking its third consecutive session of gains.

Investors shrugged off a weak overnight session on Wall Street, when mega-cap growth stocks were sold off after comments by Treasury Secretary Janet Yellen on the potential need for interest rate hikes, which she later downplayed.

The Australian metals and mining sub-index rose 0.5 per cent, hitting its highest level since May 29, 2008. Mining giants BHP Group and Rio Tinto gained 1.1 per cent and 1.2 per cent, respectively.

The miners benefited as copper prices rose past a key psychological level of US$10,000 a tonne, buoyed by optimism about global economic recovery.

Financials added 0.6 per cent, with top lender Commonwealth Bank of Australia adding 2.5 per cent, while insurer QBE Insurance Group rose 4.1 per cent.

Fourth-largest lender Australia and New Zealand Banking Group said it would consider returning capital to shareholders as its first-half profit more than doubled, but its shares still ended 3.2 per cent lower.

Shares of Westpac Banking Corp closed marginally lower after the Australian securities regulator accused the lender of insider trading while financing a A$16 billion (S$16.51 billion) Ausgrid privatisation in 2016.

Shares of export-focused healthcare companies climbed nearly 1 per cent, tracking the US dollar rally. Index heavyweight CSL gained the most on the sub-index, up 2.4 per cent.

Technology stocks declined 1.1 per cent, tracking the Nasdaq's tumble overnight, with buy-now-pay-later giant Afterpay losing 3.5 per cent.

New Zealand's benchmark S&P/NZX 50 index declined 0.5 per cent to 12,848.31, snapping a five-day gaining streak to post its biggest drop since April 21.

The Reserve Bank of New Zealand said the country has come through the Covid-19 pandemic better than initially feared, but warned that financial vulnerabilities remain.

REUTERS