Australia: Shares edge up on financials, healthcare boost

[BENGALURU] Australia shares inched higher on Friday, with financials and the healthcare sector lifting the benchmark, while resource-related stocks weakened as commodities slid on broadening fears of rate hikes and inflationary risks.

The S&P/ASX 200 index was up 0.1 per cent at 7,379.2 points, as of 1146 GMT. The benchmark, however, was headed towards a 0.8 per cent weekly loss, its biggest since Oct 29.

Investors await US President Joe Biden's final decision on his nominee to head the Federal Reserve, which could decide the timeline on tightening policy.

Banking stocks snapped a three-day losing streak to gain up to 0.7 per cent, with the "Big Four" banks all trading in the black.

Shares of Commonwealth Bank of Australia rose 1.1 per cent after falling about 9.5 per cent in the last two sessions.

Healthcare stocks added 0.7 per cent in their third straight day of gains, with biotech major CSL climbing 0.6 per cent.

Gold stocks, however, were the biggest laggards on the benchmark, losing 1.8 per cent as bullion prices were hurt by bets for an earlier-than-expected rate hike by the US Federal Reserve.

The prospect of early interest rate hikes would increase the opportunity cost of holding non-yielding gold.

Heavyweight miners declined 0.7 per cent amid weaker iron ore prices, with Australian Strategic Materials down 4.3 per cent to be the top loser in the sub-index.

Tech stocks fell 0.8 per cent, snapping a five-day streak of gains, even as two of three major indexes on Wall Street closed at record highs.

WiseTech Global and BNPL major Afterpay were leading losses in the sub-index, down 2.8 per cent and 1.4 per cent, respectively.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index was down 0.3 per cent to 12,800.3 points.

A Reuters poll found that the country's central bank will raise rates for the second meeting in a row on Wednesday and continue with its tightening spree next year.

In other markets, the S&P 500 E-minis futures were up 0.1 per cent.

REUTERS