Australian shares ended higher on Thursday as gains in financial and technology stocks outweighed losses in mining and energy sectors, while investors assessed the risk of a global recession amid a string of rates hikes to stamp out inflation.

The S&P/ASX 200 index ended 0.31% higher at 6,528.4.

The index has closed higher barely for the fifth time this month, in what is turning out to be one of the toughest period for equities this year as they come under heavy selling pressure on fears of a global economic turmoil.

Financials advanced 0.73%, and were among the top gainers on the benchmark index, with the “big four” banks climbing between 0.2% and 1.1%.

“Banks are doing better because the money has to go somewhere as miners are taking a big hit … banks are seen as a bit safer,” Deep Data Analytics Chief Executive Officer Mathan Somasundaram said.

“In a rising rate environment, property trust will struggle and that means demand for bank products will continue to slow down from here,” he added.

Miners pull Australian shares lower on weak commodity prices

Tech stocks gained 1.52%, with ASX-listed shares of Block Inc rising 4.7% to hit their highest in a week.

Local miners shed 1.94%, limiting the gains, as iron ore futures slipped on the back of rising steel inventories in top producer China.

Mining behemoths BHP Group and Rio Tinto fell 1.3% and nearly 2% respectively.

Energy stocks slipped 2.1% on weakness in oil prices, with Woodside Energy Group falling 2.6% and Santos 2%.

In New Zealand, the benchmark S&P/NZX 50 index closed 1.3% higher at 10,813.92.