Australian shares recovered some ground on Thursday, tracking Wall Street and driven by financial stocks, after strong US economic data and sharp gains in oil prices hinted at a recovering global economy. The S&P/ASX 200 index perked up 30.07 points, or 0.6 percent, to 5,483 at the close of trade. Data from the Institute of Supply Management (ISM) showed that US services sector activity rebounded to an 11-month high in September, bolstering prospects of an interest rate hike by the Federal Reserve in December.
Financials outperformed other sectors on the news, with all of the 'Big Four' banks rising. The financials index closed 0.8 percent higher, extending gains for a fourth session. The energy index gained as much as 2.1 percent and touched a 1-1/2-month high, buoyed after oil prices rose 2 percent to their highest since June. Meanwhile, New Zealand's benchmark S&P/NZX 50 index slipped 1.01 percent, or 73.87 points, to finish the session at 7,197.29, dragged down by healthcare and industrial stocks.
Heartland Bank was the biggest percentage loser, its worst day in around three months. Bucking the trend, a2 Milk Co gained the most on the benchmark, on the back of ANZ Bank's commodity price index data that showed prices for New Zealand's main commodities rose 5.1 percent in September to a 17-month high, driven by dairy prices.
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