Australian Shares Rise on Banks, Tech Boost; Fed Meeting in Focus

Reuters2022-03-16

March 16 (Reuters) - 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 U.S. Federal Reserve's meeting where it is seen hiking rates.

The S&P/ASX 200 index was up 0.5% 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 U.S. interest rate hikes, and falling commodity prices.

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

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

Healthcare stocks advanced 1.5%. Heavyweight biopharma co CSL Ltd was up 1.4%

Energy slipped nearly 1% after oil prices tumbled more than 6% as traders worried growing pandemic lockdowns in China could dent demand

Heavyweights Woodside Petroleum and Santos lost 0.9% and 0.3%, respectively.

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

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% and BHP Group fell 0.9%.

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

New Zealand's benchmark S&P/NZX 50 index 0.6% 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.

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