Australia: Shares rise on banks, tech boost; Federal Reserve meeting in focus

[BENGALURU] Australian shares inched higher on Wednesday as firmer banking and technology stocks outweighed losses in energy and gold sectors, with investors awaiting an outcome from the US Federal Reserve's meeting where it is seen hiking rates.

The S&P/ASX 200 index was up 0.5 per cent at 7,130.6 points to by 2112 GMT.

The benchmark has gyrated between gains and losses in the past few sessions on mixed developments from the Russia-Ukraine conflict, expected US interest rate hikes, and falling commodity prices.

A Wall Street rally overnight boosted Australian tech stocks 2.9 per cent on Wednesday. ASX-listed shares of Block Inc jumped 6.4 per cent, while Wisetech Global was up 3.1 per cent.

Financials gained for a third session in a row, up 0.6 per cent, with the "Big Four" banks gaining between 0.3 per cent and 1.2 per cent.

Healthcare stocks advanced 1.5 per cent. Heavyweight biopharma company CSL was up 1.4 per cent.

Energy stocks slipped nearly 1 per cent after oil prices tumbled more than 6 per cent as traders worried growing pandemic lockdowns in China could dent demand Heavyweights Woodside Petroleum and Santos lost 0.9 per cent and 0.3 per cent, respectively.

Weak bullion prices led gold stocks to decline 0.1 per cent, with the country's largest gold miner Newcrest Mining falling nearly 2 per cent. St Barbara tumbled 0.8 per cent.

The surge in Covid-19 cases in China, the world's top steel producer, also hurt iron ore prices. Australia's miners slipped 0.3 per cent and BHP Group fell 0.9 per cent.

Travel stocks in Australia gained as New Zealand reopened its borders. Major carrier Qantas Airways rose as much as 4.1 per cent.

New Zealand's benchmark S&P/NZX 50 index rose 0.6 per cent to 11,871.69. The country's Prime Minister Jacinda Ardern said it will reopen its borders much earlier than expected, with Australians allowed to travel there from April 12. REUTERS