Australia: Shares snap 7-day losing streak after RBA douses recession worries

AUSTRALIAN equities snapped a seven-session losing streak on Tuesday, led by energy and financial stocks in broad-based buying after the central bank said it does not see a recession on the horizon.

The S&P/ASX 200 index rose 1.13 per cent to 6,506.3 by 0055 GMT after shedding 9.7 per cent in the previous seven sessions.

Australia’s top central banker said he expected to discuss hiking interest rates by either 25 or 50 basis points at the July policy meeting, downplaying the possibility of a larger hike.

Energy stocks rose 3.1 per cent to be the biggest gainers on the main index.

Oil prices rose 1 per cent in early trade as the focus returned to tight supply of crude and fuel products versus concerns about a recession hitting demand down the track.

Sector heavyweights Woodside Energy and Santos jumped 2.7 per cent and 1.8 per cent, respectively.

Mining stocks rose 2.3 per cent even after benchmark iron ore prices slumped by their 11 per cent limit on Monday as fears grew about a collapse of steel consumption in top user China.

Sector heavyweights BHP Group, Rio Tinto and Fortescue advanced between 2.3 per cent and 3.1 per cent, with Fortescue set for its best day since June 3.

Financials rose 2.1 per cent, with the “Big Four” banks trading in positive territory.

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Australia: Shares extend losses as miners plunge

Commonwealth Bank of Australia, the country’s biggest lender, advanced 2 per cent, while National Australia Bank led gains with a rise of 2.8 per cent.

Across the Tasman sea, New Zealand’s benchmark S&P/NZX 50 index rose 0.58 per cent to 10,649.3. REUTERS