Australia: Shares rise on energy boost; US inflation data in focus

[BENGALURU] Australian shares inched higher on Monday, helped by a rise in energy stocks, while investors looked to US inflation data due later this week that could determine the Federal Reserve's monetary policy stance.

The S&P/ASX 200 index flitted between positive and negative territories before trading 0.4 per cent higher at 7,058.9 by 0115 GMT. The benchmark ended up 0.2 per cent on Friday.

The energy index rose 0.5 per cent, boosted by higher crude prices.

Whitehaven Coal, up 2.5 per cent, and fuel refiner Ampol were the top gainers on the subindex.

Eyeing core inflation data in the United States, investors were worried that a high reading could revive talks of an early tapering in the Fed's bond-buying programme.

Among other stocks and sectors, the IT index rose 0.2 per cent, led by Codan, up 2.8 per cent, and followed by Nuix, gaining 2.6 per cent.

The metals and mining index fell 0.1 per cent on slumping iron ore prices after top steel producer China stepped up efforts to cool a blistering demand-driven rally in raw material prices.

The mining trio - BHP Group, Rio Tinto and Fortescue Metals - fell between 0.1 per cent and 0.9 per cent.

Financial stocks dipped 0.1 per cent, led lower by AMP, down 3.6 per cent. Macquarie Group lost 2.3 per cent.

However, buy-now-pay-later (BNPL) firm Zip was the biggest gainer on the benchmark after announcing expansion to Europe and Middle East by acquiring two companies there for about A$160 million (S$164.8 million).

In New Zealand, the benchmark S&P/NZX 50 index fell 0.4 per cent to 12,415.7.

Synlait Milk was the biggest loser on the index after the dairy producer forecast annual loss due to Covid-19 disruption to its key "daigou" supply channel to China.

REUTERS