Australia: Shares snap 3 days of falls, banks and tech lead rebound

[BENGALURU] Australian shares snapped 3 straight sessions of losses on Wednesday (Mar 9), with banks and technology stocks leading the rebound in broad-based buying, as investors assessed the impact of a worsening conflict in Ukraine.

The S&P/ASX 200 index closed 1 per cent higher at 7,053.00, marking its best day since Feb 16.

Market sentiment also got a boost from Reserve Bank of Australia Governor Philip Lowe stressing that the central bank had scope to be patient on hiking interest rates and that a move might be in order later this year.

The financial sub-index was the top advancer, rising 1.5 per cent in its best session in a month, as investors sought value after recent selling. The "Big Four" banks rose between 1.1 per cent and 1.9 per cent.

Technology stocks jumped 3.2 per cent, marking their first session of rise in 5. Novonix and WiseTech Global were among the top gainers, jumping 8.3 per cent and 6.4 per cent, respectively.

The United States on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation for the invasion of Ukraine, adding to sweeping US and European sanctions imposed on Moscow.

This gave sky-high oil prices a further boost on Wednesday, with Brent crude futures climbing 1.7 per cent to US$130.15 a barrel in early Asia trade.

Meanwhile, base metals soared further, though Chinese stainless steel futures pulled back on uncertainties caused by nickel prices more than doubling on Tuesday.

The Australian mining index added 0.6 per cent following a 3.6 per cent drop in the previous session, with Fortescue Metals Group up 0.9 per cent, while Rio Tinto fell 0.5 per cent and capped gains.

Gold stocks rose 1.8 per cent to their highest since mid-June last year after bullion prices firmed overnight.

Sector heavyweights Northern Star Resources and Newcrest Mining climbed 0.7 per cent and 1.9 per cent, respectively.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.3 per cent to 11,785.13, snapping a 3-day run of losses.

Retirement village operator Ryman Healthcare gained 1.4 per cent and dairy firm a2 Milk advanced 0.7 per cent. REUTERS