Australian shares ended added 0.2 percent on Thursday, snapping six sessions of losses in choppy trade as a strong US dollar helped local exporters, though a drop in iron ore prices hurt the resource sector. The S&P/ASX 200 index added 8.6 points to 5,415.8 at the close of trade after touching an intraday low of 5,373.4. The benchmark fell 0.7 percent on Wednesday.
New Zealand's benchmark NZX 50 index added 0.2 percent or 11.8 points to finish the session at 5,154.2. Stocks with exposure to the United States found support on signs of strength in the world's largest economy and as the Aussie dollar fell near six-month lows, benefiting exporters.
Elsewhere, iron ore retreated further after a spike higher at the start of the week, reflecting continued pressure from a well-supplied market. Global iron ore miners BHP Billiton Ltd and Rio Tinto Ltd fell 1.2 percent and 0.9 percent, respectively. The banking sector reversed its strong start to trade lower. Top lender Commonwealth Bank of Australia declined 0.7 percent and Australia's oldest bank Westpac Banking Corp lost 0.4 percent.
"Overseas investors do not benefit from franking credits and lose with a falling $A, hence they sell on mass as we are currently witnessing," said Alexander Aguilan, investment adviser at Market Matters in a note to clients addressing the fall among banking stocks. Stocks with US exposure gained ground as the Australian dollar traded at $0.8963, near six-month lows in early Asia-Pacific trade. Pallet-maker Brambles Ltd jumped 1.7 percent, while blood products maker and Treasury Wine Estates Ltd climbed 1.3 percent.
Companies with large offshore earnings benefit from a weaker Australian dollar, with their bottom lines boosted as funds are repatriated. Arrium Ltd dived some 26 percent to all-time lows of A$0.42 after raising A$465 million from instituations at a steep 26 percent discount to its last trade. Macmahon Holdings Ltd soared 9.1 percent.
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