Australian shares rose on Tuesday to their highest in more than two months, as miners rode a rally in iron ore and energy stocks tracked soaring crude prices, with investors weighing the US Federal Reserve’s plan of aggressive rate hikes.
The S&P/ASX 200 index was up 1.2% at 7,367.40 by 0023 GMT. The benchmark fell 0.2% on Monday.
The metals and mining index climbed 3.4%, on track for its best day in more than two weeks, as iron ore prices ended higher on Monday.
Sector leaders Rio Tinto, Fortescue Metals Group , and BHP Group added between 1.7% and 4.3%.
Energy stocks gained 2.3%, with oil and gas explorers Woodside Petroleum, Santos and Beach Energy jumping 2.4%-3.8%.
Australia shares jump to 1-month high after Fed rate hike
Crude prices settled up more than 7% overnight as European Union nations disagreed on whether to join the United States in a Russian oil embargo after an attack on Saudi oil facilities.
Meanwhile, Fed Chair Jerome Powell said on Monday the central bank must move “expeditiously” to raise rates and possibly “more aggressively” to keep an upward price spiral from getting entrenched.
That sent domestic financial stocks up 1.3%, with the so-called “Big Four” banks advancing between 0.9% and 1.2%.
Technology stocks mirrored Wall Street’s weak finish, with Australian shares of Block Inc leading the declines with a 3.1% cut.
Coal miner New Hope Corp climbed as much as 9.9% after posting a half-year profit and announcing a four-fold jump in its interim dividend payout.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 12,147.69.
Data on Tuesday showed the country’s consumer confidence fell in the first quarter and is now at its lowest level since the global financial crisis.
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