March 1 (Reuters) - Australian shares recouped early
losses to trade flat on Wednesday after data showed consumer
prices rose by less than expected in January, although
fourth-quarter economic growth was at the weakest pace in a
year.
The S&P/ASX 200 index was down 0.05% at 7,255.10
points by 0058 GMT, after losing as much as 0.6% earlier in the
session. The benchmark lost 2.9% in February, but is up 3.1% so
far this year.
Australia grew at the weakest pace in a year as strength in
trade was offset by rising interest rates and high inflation,
with indications of a further slowdown ahead.
Consumer Price Index, a key measure of inflation, came in at
7.4% for January, below December inflation level of 8.4% and
Reuters estimate of 8%, indicating that the tight monitory
policy of the Reserve Bank of Australia (RBA) was taking effect.
Investors will now be looking forward to the interest rate
decision by the RBA on March 7, where a fifth consecutive
quarter-point rate hike could be expected, according to a
Reuters poll.
Meanwhile in New Zealand, home prices are set to fall
further this year than previously thought, according to a
Reuters poll of property analysts, as the Reserve Bank of New
Zealand continues to aggressively hike interest rates.
New Zealand's benchmark S&P/NZX 50 index was down
0.3% at 11,864.88 points.
Australian banking stocks dropped up to 1.2%, with
the "Big Four" banks trading in the negative territory.
Technology stocks dropped around 1%, with ASX-listed
shares of Block Inc gaining 0.7%, while Xero lost 2%.
Mining stocks advanced 1.7%, with sector
heavyweights BHP Group and Rio Tinto advancing
more than 1% each.
Energy stocks jumped 0.9%, with sub-index majors
Santos dropping 0.1%, while Woodside Energy Group gained 1.5%.
Gold stocks climbed 2.2% as bullion prices firmed.
Newcrest Mining gained 2% while Northern Star Resources gained 0.7%.
(Reporting by John Biju in Bengaluru; Editing by Sherry
Jacob-Phillips)
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