Australia: Banks, miners lift shares to near 3-week high

AUSTRALIAN shares rose to touch a nearly three-week high on Wednesday, underpinned by banking and mining stocks, even as shares slipped worldwide on supply snags and concerns over a potential global economic slowdown. The S&P/ASX 200 index was up 0.6 per cent at 7,174.20 points, as of 0101 GMT, its highest since May 6. The benchmark ended 0.3 per cent lower on Tuesday. MSCI’s gauge of stocks in 47 countries shed 0.9 per cent on Tuesday. Japan’s Nikkei dipped 0.3 per cent at 26,675.46 and S&P 500 E-minis futures were up 0.2 per cent. Australian financials added 1.2 per cent and were on track to log their best day in more than a week. The “Big Four” banks were up between 0.9 per cent and 1.9 per cent. The metals and mining index climbed 1.6 per cent in their fourth consecutive session of gains. Sector behemoths BHP Group, Rio Tinto and Fortescue Metals Group rose between 0.6 per cent and 1.8 per cent. Gold stocks benefited from strong bullion prices as a weaker US dollar lifted the safe-haven metal’s appeal. The sub-index jumped 2.7 per cent to touch a two-week high. The country’s largest gold miner Newcrest Mining gained 2.2 per cent, while St Barbara and Northern Star Resources rose 5.3 per cent and 2.8 per cent, respectively. Energy stocks tracked US crude futures higher to climb 0.2 per cent. Gas producer Santos was up 0.5 per cent, while Woodside Energy Group was flat. Meanwhile, global markets weakened as investors fretted over supply chain disruptions and bearish US economic data that heightened slowdown concerns. Domestic technology stocks tracked a weak overnight Wall Street session and dropped 2.4 per cent as recession worries dampened risk appetite. Australian shares of Block, Computershare, and WiseTech Global retreated between 5.5 per cent and 1.8 per cent. New Zealand’s benchmark S&P/NZX 50 index fell 0.2 per cent to 11,269.32. According to a Reuters poll, the country’s central bank will hike its policy interest rate by half-a-percentage point to counter soaring inflation when it meets later in the day. REUTERS