Australian shares edge up

Australian shares rose 0.4 percent on Monday in thin trading largely led by banks, and as investors looked for direction ahead of the US Federal Reserve meeting later this week. The S&P/ASX 200 index rose 20.1 points to 5,091.2 by 0203 GMT, after touching an intra-day high of 5,132.4 in early deals. The benchmark finished 0.5 percent lower in see-saw trading on Friday.
The index is down nearly 6 percent so far this year and is trading near mid-2013 levels. It is on track for another monthly loss after its biggest decline since late 2008 in August. Recent volatility in shares globally has unsettled investors as concerns about a global slowdown in the wake of China's market turmoil continue to weigh on sentiment, compounded by uncertainty around whether the US Fed is confident enough to raise interest rates for the first time in a decade at its policy meeting on September 16-17.
"The local share market is finding support between the 5,000 and 5,200 level as all eyes are now cast on the US Federal Reserve," said Mark Lennox, senior private adviser at HC Securities. A break below 5,000 could see the market plunging to 4,700 points, he added. Major banks led the rally on Monday with Westpac and National Australia Bank up about 1.5 percent. Commonwealth Bank lost 1 percent after raising $3.6 billion through a rights issue.
Fuelling gains in the sector, investment bank Macquarie jumped nearly 3 percent to a 3-1/2 week high after it said first-half results will be 40 percent higher. Oil and gas explorer Oil Search fell as much 3.1 percent after rejecting an $8 billion take-over offer from rival Woodside Petroleum. New Zealand's benchmark NZX50 index rose 16.9 points or 0.3 percent to 5,664.91 in early trade, supported by gains in utilities and industrial shares.
Contact Energy rose 0.8 percent, while Meridian Energy rose 0.5 percent to NZ$2.15, pulling back from a two-week low of NZ$2.13 hit on Friday. Auckland Airport rose 1.5 percent to NZ$4.85, clawing back from a slide to a two-week trough of NZ$4.76 late last week, while Port of Tauranga rose 0.5 percent. Briscoe Group rose 0.7 percent after the operator of homewares and sports supply stores reported a 10.8 percent jump in annual profit but warned that a weaker domestic currency would weigh on its margins on imported goods.