Australia: Shares rise as strong US corporate earnings boost banks, tech stocks

AUSTRALIAN shares rose for a second straight session on Wednesday, led by banking and technology shares, as overnight Wall Street gains on positive earnings reports boosted sentiment.

The S&P ASX 200 index rose 0.1 per cent, or 6.8 points, to 6,786 by 2348 GMT, after ending 1.7 per cent higher on Tuesday.

Financial shares rose 0.4 per cent, led by the ‘Big Four’ lenders – Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corp and Australia and New Zealand Banking – rising between 0.3 per cent and 0.8 per cent.

Wall Street bank Goldman Sachs reported a smaller-than-expected fall in profit, one of the factors that drove US indices to a higher close.

However, heavyweight mining firms fell 0.5 per cent.

BHP Group retreated 1.2 per cent and was the top drag on the benchmark index despite iron ore production rising in the September quarter.

Rio Tinto and Fortescue Metals Group fell 1 per cent and 0.1 per cent, respectively.

Energy stocks dropped 1.8 per cent, after oil prices settled lower on fears of high supply from the United States and lower demand from China.

Shares in Whitehaven Coal lost 1.4 per cent after the company reported a 23 per cent drop in quarterly production due to flooding in New South Wales, where its projects are located.

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Australia: Shares close higher on tech, financial boost

Origin Energy was down 0.6 per cent even as Australia’s No.2 power producer said it expected a sharp rise in underlying earnings from its energy markets business in the 2023 financial year due to higher natural gas prices.

Strong earnings reports from Wall Street especially boosted the local tech sector, with the sub-index rising 0.4 per cent.

Xero rose 1.1 per cent, while WiseTech Global rose 0.8 per cent.

Australia will report employment data for September on Thursday.

In New Zealand, the S&P/NZX 50 index rose 0.7 per cent, or 80.36 points, to 10,927.7.

Air New Zealand and Fletcher Building were the top gainers on the benchmark index, rising 3.3 per cent and 2.6 per cent, respectively. REUTERS