off-the-wire

Australian shares rise on energy, tech boost amid rate-hike fears

Kitco Media
By Reuters
Published:
Updated:
Reuters
Feb 24 (Reuters) - Australian shares inched higher on Friday as gains in energy and technology stocks slightly outweighed weakness in mining and gold companies, with resilient U.S. data bracing investors for more rate hikes by the Federal Reserve in its future meetings. The S&P/ASX 200 index rose 0.1% to 7,295.0 points by 2350 GMT, but was on track to post a third straight weekly loss. U.S. data showed new claims for unemployment benefits fell last week, while Fed's preferred inflation measure — personal consumption expenditures — were revised upward to 3.7% for the fourth-quarter, indicating a resilient labour market and a stronger inflation. While the Fed is expected to deliver two additional rate hikes of 25 basis points in March and May, financial markets are betting on another increase in June.


Domestic technology stocks shot up over 1.5%, mirroring trends in their overseas peers. Sector majors ASX-listed shares of Block Inc and Computershare Ltd added 6.1% and 1.2%, respectively. Financials climbed 0.4%, with all "Big Four" banks posting gains.


Energy stocks rose 0.6% after oil prices settled higher overnight on expectations of steep cuts to Russian production next month. Woodside Energy Group and Santos Ltd climbed 0.2% and 0.4%, respectfully. Capping gains on the benchmark index, mining stocks dropped 1.1% after iron ore prices on the Chinese futures exchange slid marginally. Sector giants BHP Group and Rio Tinto fell 1.1% and 2.4%, respectively.


Gold stocks declined 1.1% after bullion prices slipped to their lowest in about two months overnight. Lithium miner Allkem Ltd rose up to 1.2% as its first-half profit jumped nearly eleven-fold, boosted by sky-rocketing prices for the battery metal. New Zealand's benchmark S&P/NZX 50 index fell 0.1% to 11,875.08 points. (Reporting by Jaskiran Singh in Bengaluru; editing by Uttaresh.V)


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