Australia: Banking, energy stocks drive markets higher ahead of GDP data

AUSTRALIAN shares rose on Wednesday, boosted by a rally in the financial and energy sectors, ahead of GDP data expected later in the trading day, despite bleak cues from the Wall Street session overnight. The S&P/ASX 200 index climbed 5.8 points, or 0.1 per cent, to 7,217 by 0100 GMT. The index slid 1 per cent on Tuesday. Elsewhere in Asia, Japan’s Nikkei was up 0.5 per cent to 27,425.77, while Wall Street’s S&P 500 E-minis futures were 0.5 per cent higher. Australia’s GDP in the first quarter is expected to have grown 2.9 per cent year-on-year, according to a Reuters poll – a slower rate than the 4.2 per cent growth recorded in the fourth quarter of 2021. Australian banks rose 1 per cent, with No. 1 and No. 2 lenders Commonwealth Bank of Australia and National Australia Bank climbing 1.4 per cent and 1 per cent respectively, pulling the benchmark higher. The local currency was also stronger, lending further support to banks. Local energy stocks also gained 0.4 per cent, tracking a spike in oil prices, after the European Union announced it will cut 90 per cent of imports of Russian oil. Santos Ltd rose as much as 0.6 per cent. The energy producer said it would supply gas to Yara Pilbara Fertilisers’ liquid ammonia plant, in addition to working with the firm on decarbonisation initiatives. However, energy retailer Origin Energy fell as much as 13.6 per cent after it withdrew its earnings guidance for the next financial year due to volatility in coal markets as well as supply chain delays disrupting its operations. Origin Energy’s stock was also the biggest drag on the benchmark index. New Zealand’s benchmark S&P/NZX 50 index rose 0.2 per cent to 11,334.42 by 0100 GMT. REUTERS