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Finance index hits lowest since Jan 3
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Mining index sees best day since Jan 6
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BHP Group jumps the most in 3-1/2 months
(Updates to close)
By Echha Jain
March 2 (Reuters) - Australian shares eked out a slight
gain on Thursday in a choppy trading session as upbeat
manufacturing data from China offset the dour mood from
lacklustre domestic economic data, with the focus shifting
towards a central bank meeting due next week.
The S&P/ASX 200 index rose 0.1% to 7,255.40, after
falling 0.1% on Wednesday.
Wednesday's data showed manufacturing activity in China expanded at the fastest pace in more than a decade in February, exceeding analysts' estimates. "Clearly there is some optimism on China after purchasing managers' index numbers and the bounce in their economy," said Henry Jennings, senior market analyst and portfolio manager at Marcustoday Financial Newsletter Data on Wednesday showed Australia's economy grew at its weakest pace in a year in the December quarter as rising interest rates and high inflation offset the strength in trade.
Investors also await the Reserve Bank of Australia's (RBA) policy meeting on Tuesday, when a fifth consecutive quarter-point rate hike is widely expected, according to a Reuters poll. However, Carl Capolingua, market analyst at ThinkMarkets Australia, expects the RBA "to soften some of the rhetoric to become a little more moderate."
Miners advanced 3.2%, their biggest gain since Jan.
6, as iron ore futures rose on the upbeat China data. Global miner BHP Group added about 4% to record its
best day in three-and-a-half months.
Energy stocks climbed 1.4% as oil prices inched
higher on signs of a strong economic rebound in China, the
world's top oil importer. Woodside Energy and Santos rose 2.2% and
0.7%, respectively.
On the other hand, financials slid 1.9% to close at
their lowest level since Jan. 3, with the so-called "Big Four"
banks swinging into the red.
New Zealand's benchmark S&P/NZX 50 index gained 0.2%
to finish the session at 11,900.86.
(Reporting by Echha Jain in Bengaluru; Editing by Dhanya Ann
Thoppil)
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