Australia: Shares rise on banks, energy boost; Federal Reserve meeting in focus

AUSTRALIAN shares rose on Wednesday, lifted by banking and energy stocks, with investors awaiting the US Federal Reserve’s interest-rate decision and its approach to tame sky-high inflation. The S&P/ASX 200 index was up 0.6 per cent at 7,360.20 points by 0019 GMT, after falling 0.4 per cent on Tuesday. Markets expect the Fed to hike rates later on Wednesday by 0.5 basis points – the biggest since 2000 – just a day after the Australian central bank delivered its first rate increase in over a decade. Domestic energy stocks jumped 1.6 per cent, as oil prices climbed after drawdowns in US crude and fuel stockpiles sparked supply worries. Heavyweights Woodside Petroleum and Santos added more than 1 per cent each, while Beach Energy gained up to 2.3 per cent. Financials rose 0.5 per cent, with Australia and New Zealand Banking Group gaining up to 2 per cent as the bank beat estimates for first-half profit and forecast improved second-half margins. Commonwealth Bank, Westpac Banking Corp and National Australia Bank advanced nearly 1% each. Australian banks also raised their home loan variable interest rates by 0.25 per cent per annum, after the country’s central bank hiked its cash rate to 0.35 per cent and warned of more to come. Miners were up 0.7 per cent, with heavyweights BHP Group and Rio Tinto up 0.7 per cent and 0.8 per cent respectively. Firm bullion prices boosted gold stocks by 1 per cent, with the country’s largest gold miner Newcrest Mining leaping 0.4 per cent. However, tech stocks fell 0.5 per cent. ASX-listed shares of Block Inc slipped 2.3 per cent and was among the top losers on the sub-index. In New Zealand, the benchmark S&P/NZX 50 index was up 0.2 per cent at 11,697.97. REUTERS