Australia: Shares rise on resources boost; New Zealand’s Fonterra jumps over 2%
AUSTRALIAN shares rose on Friday as higher commodity prices lifted the resources sector, although there was caution among some investors on worries about slowing global economic growth.
The S&P/ASX 200 index gained about 0.4 per cent to 6,876.5 points by 0100 GMT.
The benchmark ended 1.8 per cent higher on Thursday.
Investors have been concerned that aggressive rate hikes by the Federal Reserve, to tame surging inflation, could tip the US and other major economies into a recession.
Fed Chair Jerome Powell said late on Thursday that the central bank will remain committed in bringing down inflation without the “very high social costs” involved previously.
Looking ahead, market participants await the US consumer price data next week for further cues on the Fed’s rate hike path.
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Back in Australia, the mining sub-index led the gains, rising as much as 2.1 per cent, as iron ore prices rebounded in China.
Sector majors Rio Tinto, BHP Group and Fortescue Metals added between 1 per cent and 3.4 per cent.
Gold stocks jumped about 1.5 per cent, with index heavyweights Northern Star Resources and Newcrest Mining climbing 1 per cent and 0.6 per cent, respectively.
The financial sub-index rose 1.7 per cent, and the “Big Four” banks gained 0.9 to 1.1 per cent.
However, the index was on track for its fourth consecutive weekly loss.
Energy stocks, however, shed about 0.5 per cent, with Woodside Energy and Santos slipping around 0.1 per cent and 1.1 per cent, respectively.
New Zealand’s benchmark S&P/NZX 50 index fell 0.4 per cent to 11,637.7 points.
Dairy firm Fonterra firmed as much as 2.3 per cent after hiking its FY2023 earnings guidance due to robust demand for its milk products. REUTERS
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