Australia: Shares rise on mining, tech boost; NAB drops

AUSTRALIAN shares climbed on Thursday, as miners advanced on strong underlying commodity prices and tech stocks tracked Wall Street higher after the US Federal Reserve delivered a widely expected interest-rate hike. The S&P/ASX 200 index was up 0.6 per cent at 7,348.0 by 0055 GMT, with all sectors except financials trading in positive territory. The benchmark fell 0.2 per cent on Wednesday. Stock markets rallied globally after the Fed said it would begin to reduce its balance sheet in June, in a decision seen as less hawkish than some feared, and Chair Jerome Powell said the central bank was not “actively considering” a 75 basis-point rate hike. Heavyweight miners were the top boost to the benchmark stock index in Australia, jumping 1.6 per cent after iron ore futures leapt more than 4 per cent on China demand hopes. Iron ore behemoths BHP Group, Rio Tinto and Fortescue Metals Group gained between 0.6 per cent and 2.6 per cent. Energy stocks soared 1.7 per cent as oil prices extended gains fuelled by a proposal of the European Union to impose new sanctions against Russia that included an embargo on crude oil in six months. Heavyweights Woodside Petroleum and Santos jumped nearly 2 per cent each. Tech stocks tracked their Wall Street peers higher, rising 2.3 per cent. ASX-listed shares of Block Inc were up 2.1 per cent. Firm bullion prices helped gold stocks rise 1.7 per cent. Newcrest Mining, the country’s largest gold miner, gained 0.4 per cent. Meanwhile, financials skid 1.3 per cent. National Australia Bank dropped 3.5 per cent after the country’s No. 2 lender warned of higher costs. Westpac Banking Corp, and Australia and New Zealand Banking Group slipped between 1 per cent and 1.6 per cent, while Commonwealth Bank of Australia gained 0.7 per cent. Australian carrier Qantas Airways said it would buy the remaining 80 per cent stake in Alliance Aviation Services for A$610.8 million (S$609 million) in an all-stock deal to expand its footprint in the charter business. New Zealand’s benchmark S&P/NZX 50 index was up 0.5 per cent at 11,729.85.