Australia: Shares rise as Ukraine hopes lift sentiment; banks shine
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[BENGALURU] Australian shares rose more than 1 per cent on Monday (Mar 14), aided by gains in financial and healthcare stocks, as global investor sentiment was boosted by hopes for progress in peace talks between Ukraine and Russia even as the conflict continued to escalate.
The S&P/ASX 200 index ended 1.2 per cent higher at 7,419.4.
The benchmark had dropped 0.9 per cent on Friday, posting its worst weekly performance since Feb 25.
Even as Russian missiles hit a large Ukrainian base near the border with Poland on Sunday, both sides showed promising signs for prospects of talks.
Heightened geopolitical tensions, along with surging global inflation, have weighed on riskier assets since late February, with markets closely eyeing the US Federal Reserve's next move to rein in higher prices.
The Fed is widely expected to lift rates by 25 basis points in its meeting later this week, while the Bank of England is seen raising rates to 0.75 per cent on Thursday.
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In Australia, financials emerged as the top gainers on the benchmark index, rising about 2.5 per cent to their highest since Feb 24. The "Big Four" banks advanced between 1 and 2 per cent.
"The Australian market seems to be having a relief rally for the day and also considering that there is no impetus for the Federal Reserve to change its stance as far as raising rates goes, the banks are taking some solace from that," Brad Smoling, managing director of Smoling Stockbroking, said.
Technology stocks rose 0.6 per cent, with Xero gaining 1.2 per cent, while healthcare shares climbed more than 2 per cent.
Among losers, miners fell the most, down 0.7 per cent as iron ore futures slumped after rising Covid-19 cases in China, the world's largest steel producer, fuelled economic slowdown worries.
Energy shares reversed course to close slightly lower, as crude prices slipped from multi-year highs, while gold stocks dipped about 0.4 per cent as investors left the metal for riskier assets.
Fuel supplier Ampol rose 3.2 per cent on selling its New Zealand unit Gull for NZ$572 million (S$529.8 million).
New Zealand's benchmark S&P/NZX 50 index slipped about 0.1 per cent, or 16.3 points. REUTERS
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