Australia: Shares end higher on tech, banking boost; RBA holds rates

[BENGALURU] Australian shares closed higher on Tuesday (Mar 1), boosted by technology and banking stocks, at a time when the country's central banks held rates at a record low and the West cranked up sanctions against Russia over its invasion of Ukraine.

The S&P/ASX 200 index ended 0.7 per cent higher at 7,096.5, extending gains to a third straight session, and climbing in tandem with firmer moves on broader Asian markets.

The Reserve Bank of Australia kept its cash rate at a record low of 0.1 per cent and cited the war in Ukraine as a major new source of uncertainty as it stressed patience on tightening policy.

"The market is probably pricing in the move towards hikes as the geopolitical situation calms down," said Damian Rooney, director of equity sales at Argonaut, adding that investors are eyeing the Federal Reserve March meeting for a rake hike.

Tech stocks jumped 5.7 per cent, tracking peers on Wall Street, with Block's Australian shares soaring 12.8 per cent. The country's biggest lender Commonwealth Bank of Australia jumped 1.5 per cent after saying it will sell a 10 per cent stake of China's Bank of Hangzhou for about A$1.8 billion (S$1.8 billion), exiting a nearly 2-decade-old investment amid market pressure.

The other 3 of the "Big Four" banks advanced between 0.7 per cent and 1.5 per cent, lifting the financial sub-index 1.02 per cent higher.

The Western Australian government opening borders will, hopefully, ease supply chain issues that the country has been seeing since last year, Rooney said.

Among other individual shares, lithium and nickel miner IGO added 6.7 per cent after it discontinued negotiations with UK-based Glencore to buy its CSA copper mine in New South Wales state.

In New Zealand, the benchmark S&P/NZX 50 index closed 1.8 per cent higher at 12,197.92. REUTERS