Australian shares closed higher on Wednesday, aided by an extended rally in technology and banking stocks, as global sentiment improved on hopes of a possible end to the Russia-Ukraine conflict.
The S&P/ASX 200 ended up 0.7% at 7,514.5, marking a seventh straight session of gains. Russia on Tuesday promised to scale down military operations around Ukraine’s capital Kyiv, while Ukraine proposed adopting a neutral status in face-to-face negotiations.
CommSec Market Analyst Steven Daghlian said that though peace talks were supporting sentiment, investors should remain wary of the continuous rise in bond yields which is not a positive development for tech firms.
Australian technology stocks were the top gainers on the benchmark on Wednesday, adding over 3.8% and hitting their highest level in 10 weeks.
ASX-listed shares of Block Inc soared 6.1%, while accounting software provider Xero Ltd gained 5.3%, its highest since mid-February.
Financials added nearly 1% in their third straight session of gains.
Australia shares set to rise, NZ up
Westpac added close to 1%, and both National Australia Bank and Commonwealth Bank of Australia climbed 0.8% and 0.7%, respectively. Commodity-linked stocks, however, continued to weigh on the benchmark for a second consecutive session. Miners slipped 0.3%, while energy and gold stocks also ended the day marginally lower.
“We’re seeing mining and energy stocks coming under a little bit of pressure and I think its a mix of Russian-Ukraine peace talks and also the lockdown in Shanghai,” Daghlian added. New Zealand’s benchmark S&P/NZX 50 index ended 1.5% higher at 12,098 points.
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