Australia: Shares inch higher on energy, tech stocks

[BENGALURU] Australian shares closed slightly higher on Thursday, helped by energy and tech stocks, in thin trading volumes as investors returned from the New Year's Day holiday.

The S&P/ASX 200 index climbed 0.1 per cent to 6,690.60 on the first trading session of the year after a 1.8 per cent drop on Tuesday. Markets were closed on Wednesday.

Investor sentiment was aided by news that the US and China would sign a trade pact soon after a year of on-and-off negotiations between the world's two top economies.

The Aussie energy sub-index gained 0.2 per cent, with sector heavyweights Santos Ltd and Woodside Petroleum Ltd adding 0.5 per cent and 0.3 per cent, respectively.

Oil prices marked the biggest annual gain in three years in 2019, supported by a thaw in the prolonged dispute between Washington and Beijing and an output cut pledged by Opec (Organization of the Petroleum Exporting Countries) and its allies.

Meanwhile, Afterpay Ltd advanced 4.6 per cent and was the fourth-biggest percentage gainer on the benchmark, after the buy-now-pay-later company said California approved its lending licence.

That came as California rejected a similar application for Sezzle Inc, Afterpay's competitor, knocking the stock down 20.3 per cent to its lowest since its July debut.

Afterpay's gain helped the technology sector climb 0.3 per cent.

Telecom stocks also rose, with Telstra Corp firming 1.1 per cent in its best session in over two weeks.

The mining sector, which has a heavy bearing on the main index, inched higher. BHP Group Ltd, the world's biggest miner, gained 0.1 per cent, while rival Rio Tinto Ltd rose 0.8 per cent.

The gold sub-index dipped 0.8 per cent, with Perseus Mining Ltd fell 2.6 per cent, while Resolute Mining Ltd dropped 2 per cent.

Financials ended flat, with all of the Big Four banks closing in the red.

New Zealand markets were closed for a public holiday.

REUTERS