Australia: Shares struggle for direction, tech top drag

AUSTRALIAN shares struggled for momentum on Monday, as gains in miners on the back of firm commodity prices countered losses in technology and financial stocks.

The S&P/ASX 200 index rose 0.09 per cent to 6,789.10, as of 0107 GMT, after adding 2.8 per cent last week in its best week since mid-March.

The US Federal Reserve is expected to deliver another 75-basis point interest rate hike later this week as it looks to tackle stubbornly high inflation, keeping global risk sentiment in check.

Among global markets, Japan’s Nikkei was down 0.34 per cent, while S&P 500 E-minis futures were down 0.04 per cent.

In Australia, miners gained 0.7 per cent, with sector majors BHP Group, Rio Tinto and Fortescue Metals Group adding between 0.5 per cent and 1.9 per cent.

Iron ore prices rose on Friday as falling steel inventories in the world’s biggest steel producer, China, indicated replenishment-driven demand.

Diversified miner South 32 jumped as much as 2.5 per cent after posting a rise in fourth-quarter metallurgical output from its flagship Illawarra project in New South Wales.

Technology stocks were the top drag, shedding more than 1 per cent after major Wall Street indexes closed lower on Friday.

Australia-listed shares of Block Inc fell 3 per cent, while Xero slipped 1.3 per cent.

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Australia: Shares log best week since mid-March on boost from banks

Financials edged lower, with three of the four so-called “big four” banks trading in negative territory.

Gold stocks eased 0.1 per cent, while energy stocks dipped 0.8 per cent.

Newcrest Mining, Australia’s largest yellow metal miner, and heavyweight oil major Woodside Energy Group fell 0.9 per cent and 0.7 per cent, respectively.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.01 per cent to 11,264.61. REUTERS