Australia: Shares snap losing streak as geopolitical tensions ease
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AUSTRALIAN shares snapped a three-session losing streak on Thursday (Nov 17), as geopolitical tensions eased after Poland said a missile that hit the country was probably a stray Ukrainian defence projectile and not a Russian strike.
The S&P/ASX 200 index ended 0.2 per cent higher at 7,135.7. Earlier in the day, the index dropped 0.2 per cent as better-than-expected jobs data made a case for more interest rate hikes and the fallout of crypto exchange FTX dampened risk appetite.
Poland and military alliance Nato eased fears of a wider international war when they said Tuesday’s blast that killed two people at a grain facility in the country was probably a stray fired by Ukraine’s air defences.
“It is more or less just treading water today on the ASX today,” said Brad Smoling, managing director at Smoling Stockbroking.
Banking and healthcare stocks rose 0.4 per cent and 1.3 per cent, respectively, to lead gains on the benchmark.
Shares of healthcare major CSL firmed 1.4 per cent.
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Gold stocks gained 1.1 per cent despite bullion retreating from a three-month peak after safe-haven demand from latest geopolitical concerns faded.
Bucking the trend, heavyweight mining stocks dropped 1.4 per cent after iron ore futures eased after a four-session rally.
Sector majors BHP Group and Rio Tinto fell 1.5 per cent and 1.8 per cent, respectively.
An extended slump in oil prices led Australian energy stocks 2.1 per cent lower.
Meanwhile, data showed that Australia’s jobless rate matched five-decade lows in October as employment climbed by double market forecasts, a sign it will take further increases in interest rates to loosen the drum-tight labour market.
Risk appetite was dampened earlier in the day after the suspension of licence of the local arm of cryptocurrency exchange FTX until mid-May next year.
“The market is still watching very closely the fallout from the FTX and the further repercussions it might have in relation to the derivative exposure and what that might do to equity markets,” Smoling said.
New Zealand’s benchmark S&P/NZX 50 index ended 0.6 per cent higher at 11,294.52. REUTERS
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