[BENGALURU] Australian shares fell on Wednesday as buoyant gains in energy stocks after a surge in oil prices were overshadowed by weakness in the heavyweight financial sector.

The S&P/ASX 200 index fell 0.8 per cent to 5,362.3 by 0100 GMT after two straight sessions of gains. It was off 25.2 per cent from its lifetime high hit on Feb 20 and down 19.1 per cent so far this year.

Oil prices soared overnight on prospects that fuel demand will likely begin to pick up as some European and Asian countries along with several US states began to ease coronavirus lockdown measures.

That lent support to the Australian energy sub-index, which jumped as much as 2.3 per cent. Oil and gas producer Beach Energy and Whitehaven Coal dominated gains, adding 0.7 per cent and 1.1 per cent, respectively.

But the financial sector, the largest constituent of the benchmark index, fell more than 1 per cent, with the "Big Four" lenders down between 1.2 per cent and 1.6 per cent.

Australia's big banks have warned that credit losses from the country's first expected recession in three decades will top A$17 billion (S$15.5 billion) but analysts predict the bill for the coronavirus lockdown will be higher, which could lead to more capital raisings and dividend deferrals.

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Gold stocks rose more than 2 per cent on firmer bullion prices, putting the sub-index on track for a third straight session of gains.

National Storage REIT, the country's largest self-storage facility operator, was the worst performer on the benchmark index and most heavily traded by volume. Shares of the company slid as much as 8.3 per cent a day after they resumed trade, following a discounted equity raise.

Meanwhile, electronics retailer JB Hi-Fi jumped as much 7.8 per cent to a more than one-month high after reporting strong third-quarter sales growth in Australia.

The number of issues on the ASX that advanced were 584 while 441 declined as a 1.3-to-1 ratio favoured advancers. There were 83 new highs and 69 new lows

In New Zealand, the benchmark S&P/NZX 50 index rose 0.82 per cent to 10,576.8, boosted by payments platform provider Pushpay Holdings, which hit a record high.

REUTERS