(Updates to close)
By Upasana Singh
Feb 8 (Reuters) - Australian shares ended higher on
Wednesday, supported by banks and miners and as insurer Suncorp
jumped on strong first-half results, while
less-hawkish-than-feared comments from U.S. Federal Reserve
Chair Jerome Powell also boosted risk appetite.
The S&P/ASX 200 was up 0.4% at 7,530.10 points. The
benchmark closed 0.5% lower on Tuesday.
"Whilst the ASX is higher today, there's caution in the
air," said Matt Simpson, senior market analyst at City Index.
"On one hand, its retracing higher as Wall Street took (Fed
Chair) Jerome Powell's comments as less hawkish than originally
feared, yet investors are also mindful of the potential for
higher domestic interest rates."
The Reserve Bank of Australia raised its cash rate by 25
basis points to a decade-high of 3.35% on Tuesday and reiterated
that further hikes would be needed, a more hawkish policy tilt
than many had expected.
Australian Treasurer Jim Chalmers said on Wednesday signals
by the central bank that it had not stopped tightening policy
were "pretty straightforward."
Meanwhile, Powell's comments on Tuesday renewed investor
hopes for a less-aggressive monetary policy that wavered after a
strong U.S. jobs report last Friday. Financials climbed 0.9%, with shares of National
Australia Bank and Australia and New Zealand Banking
Group adding 1% and 0.5%, respectively.
Miners advanced 0.9%. BHP Group and Rio
Tinto rose 0.2% and 1.1%, respectively.
Fortescue Metals surged 2%. The fourth-largest iron
ore miner globally entered into a deal with the Gabonese
government for the Belinga iron ore project in West Africa and
plans to begin mining in the second-half of 2023.
Energy stocks closed 0.2% higher in their fourth
straight session of gains as they tracked rising oil prices. Among individual stocks, construction materials maker Boral soared 12.8% after its first-half underlying earnings
beat estimates.
Insurer Suncorp jumped 4.6% on posting an upbeat
first-half cash earnings.
New Zealand's benchmark S&P/NZX 50 ended 0.7% higher
at 4,847.51 points.
(Reporting by Upasana Singh in Bengaluru; Editing by Sherry
Jacob-Phillips)
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