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Tech leads gains with a 2.4% jump
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Gold stocks sole underperformer, down 0.6%
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Australia employment data due on Thursday
(Updates to close)
By Savyata Mishra
March 15 (Reuters) - Australian shares ended a three-day
rout to close higher on Wednesday, led by a recovery in tech and
banking stocks, as jitters from the collapse of U.S.-based
Silicon Valley Bank (SVB) abated.
The S&P/ASX 200 index rose 0.86% to 7,068.90 at the
close of trade, rebounding after a more-than-4% drop over the
last three sessions.
Globally, Asian equities rose sharply tracking a relief
rally on Wall Street, as the closely watched U.S. inflation data
came in line with expectations and raised hopes of a smaller
interest rate hike by the Federal Reserve at its meeting next
week. {MKTS/GLOB]
Fears of possible contagion from SVB's demise were also
allayed on Tuesday as U.S. President Joe Biden and other global
policymakers vowed the crisis would be contained.
Back in Sydney, analysts expect markets to remain volatile.
"Given the magnitude of market moves earlier in the week and
the ramifications of the failed banks, it will take time for
this to be fully digested by markets," said Kerry Craig, a
global market strategist with JPMorgan.
"The market will now be focussed on the outlook for interest
rates locally and globally," he added.
"I remain cautious until we have better visibility on the
interest rate environment and any contagion from SVB," Damian
Rooney, an institutional dealer with Argonaut Securities said.
Australia's tech sub-index took cues from its U.S.
peers, leading the rebound on the benchmark with a 2.4% jump.
Healthcare stocks advanced 1.6%, supported by a
stronger greenback overnight. Biotech giant CSL Ltd finished 1.6% higher.
Financials climbed 0.9% after a three-day losing
run, with the "Big Four" banks rising between 1% and 0.6%,
excluding Commonwealth Bank of Australia that lost 0.3%.
Miners firmed 0.9%. The country's mining triumvirate
BHP Group , Rio Tinto and Fortescue Metals gained more than 1% each.
Gold stocks slipped after a three-day rally to end
0.6% lower on easing bullion prices. New Zealand's benchmark S&P/NZX 50 index closed 0.2%
higher at 11,617.27. Vista Group was the top performer
with a 3.7% rise.
(Reporting by Savyata Mishra in Bengaluru; Editing by Janane
Venkatraman)
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