Australia: Shares extend gains to two-month high on banking, tech boost

[BENGALURU] Australian shares rose on Wednesday, led by banking and technology stocks, as investors assess the increased possibility of swift interest rate hikes following hawkish comments from the US Federal Reserve, though a commodity slump capped gains.

The S&P/ASX 200 index rose 0.5 per cent to 7,380.40 points by 0008 GMT, its highest level since Jan 19. The benchmark closed 0.9 per cent higher on Tuesday.

Investors across global markets weighed comments from US Federal Reserve Chair Jerome Powell about acting "expeditiously" to hike rates and maybe "more forcefully" to prevent an upward price spiral from becoming entrenched.

Financials climbed 1.1 per cent to scale their highest levels in more than four months, with the country's four largest lenders advancing between 0.4 per cent and 1.1 per cent.

Domestic technology index gained 3.4 per cent, after its counterpart Nasdaq closed higher on Tuesday.

ASX-listed shares of Block Inc and Computershare rose 8.5 per cent and 1.4 per cent, respectively.

Limiting gains, the metals and mining index dropped 0.9 per cent, following a 3.5 per cent jump in the previous session and snapping a five-day winning streak, due to weak iron ore prices.

Heavyweights Rio Tinto and BHP Group fell 0.4 per cent and 1.7 per cent, respectively, while rival Fortescue Metals Group added 0.2 per cent.

Energy stocks dipped 0.1 per cent, as oil prices edged lower overnight after it looked unlikely that European Union nations would agree to join the United States in a Russian oil embargo in retaliation for its invasion of Ukraine.

Oil and gas explorer Woodside Petroleum was trading flat, while Santos slipped 0.3 per cent.

Bullion prices fell more than 1 per cent to a near one-week low, dragging local gold stocks down 1 per cent.

Northern Star Resources and Newcrest Mining retreated 1.5 per cent and 1.2 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index fell 0.8 per cent to 12,098.34, set for its worst day since March 8, if losses hold.

Fisher & Paykel Healthcare dropped as much as 9.2 per cent after the medical device maker forecast a 14 per cent slump in its annual revenue. REUTERS