Australian shares rose on Thursday, led by gains in financials and tech, which tracked the Wall Street higher after investors cheered the US Federal Reserve’s decision to hike interest rates by three-quarters of a percentage point.
The S&P/ASX 200 index snapped a four-day losing streak to climb 1% in early trade. The benchmark fell 1.3% on Wednesday.
The Fed’s decision to hike rates by 75 basis points - a widely expected move - was welcomed by investors as they viewed that the economy was better off in the long run if the Fed succeeded in reining in prices now.
Australian shares extend fall as investors weigh bigger Fed hike
Tech stocks climbed as much as 1.9% to their highest level in a week. EML Payments climbed 6.3% to lead gains on the index, followed by Novonix, up 4.9%.
Financials advanced 1% with the big four banks gaining between 0.3% and 1.5%.
Meanwhile, Link Administration’s shares slumped as much as 10.7% to their lowest level in over two years after the country’s competition regulator tabled concerns about Canadian firm Dye & Durham Ltd’s (D&D) proposed C$3.2 billion ($2.48 billion) acquisition of the firm.
Gold stocks rose 2.3% on higher bullion prices.
Heavyweights Newcrest Mining and Northern Star Resources were up 2.1% and 1%, respectively.
Mining stocks also advanced 1.2%, even though iron ore prices fell, but upbeat economic data from top consumer China for the month of May pushed copper and aluminium prices higher.
Energy stocks shed 0.9% on a decline in oil prices after the Fed’s announcement, as markets worried that there could be a fall in demand for the commodity which trades in the greenback.
New Zealand’s benchmark S&P/NZX 50 index rose 1% and was headed for its best session in two weeks.
The country’s economy unexpectedly contracted in the first quarter as a slump in exports swamped strong domestic spending.
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