Australia: Shares extend gains to third day on gold, energy boost

[BENGALURU] Australian shares closed slightly higher on Monday, helped by gains in gold and energy stocks as underlying commodity prices rose, although heavyweight miners were weighed down by a slump in Asia's iron ore futures.

The S&P/ASX 200 index closed up 0.2 per cent at 7,045.9, extending gains into a third session.

"Australian markets are subdued, perhaps with one eye on China's commodity price displeasure," Jeffrey Halley, a senior market analyst at Oanda, said in a note.

China's state planner has warned against commodity price manipulation, sparking a sell-off in Asia's iron ore futures, and dragging Australian miners to their lowest since mid-April.

The Australian mining trio of BHP Group, Rio Tinto and Fortescue Metals Group slipped between 2 per cent and 4.3 per cent.

Gold stocks led the gains with a rise of 2.2 per cent. The sub-index hit its highest close in more than four months, as bullion prices hovered near a 4-1/2-month high.

Index heavyweights Newcrest Mining and Northern Star Resources gained 2.7 per cent and 0.9 per cent, respectively.

Energy stocks tracked an uptick in oil prices and closed 1.1 per cent higher. Woodside Petroleum jumped 1 per cent, while Santos added 2.3 per cent.

Financial stocks closed higher for a third straight session, marking their best finish in three months. The "big four" banks added between 0.6 per cent and 1.2 per cent.

Tech stocks jumped 0.2 per cent, while the healthcare sector added 1.5 per cent.

Online retailer Kogan.com was the top gainer on the benchmark with a near 14 per cent jump, as bargain hunters snapped up the stock after Friday's plunge.

In New Zealand, the benchmark S&P/NZX 50 index closed down 0.1 per cent at 12,449.0. Synlait Milk fell 1.6 per cent after it forecast an annual loss.

REUTERS