Australian shares climb as Fed officials ease banking contagion fears

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 27 (Reuters) - Australian shares rose on Monday, led by banking and real estate stocks, as speeches from the U.S. Federal Reserve officials assuaged investor fears over a potential liquidity crisis in the financial services sector. The S&P/ASX 200 index rose 0.3% to 6,977.3 points by 0009 GMT. The benchmark lost 0.6% last week. On Wall Street, major indexes ended the session higher after U.S. Fed officials said there was no indication that financial stress was worsening.


In Australia, financials rose 0.5%, with the "Big Four" banks adding between 0.1% and 0.7%. Bank Of Queensland jumped 1.6% as the lender announced a board reshuffle, appointing former executive chairman Patrick Allaway as its chief executive officer.


Ampol was among the top losers in the benchmark index after it flagged a hit to gasoline production at its refinery in Queensland. Shares were down 2.1%.


Local digital payments firm Latitude Group Holdings fell 1.7% after announcing that 7.9 million Australian and New Zealand driver license numbers were stolen as a part of a malicious cyber attack on March 16.


Shares of technology and real estate companies gained 0.6% and 1.5%, respectively.


Gold stocks added 0.4% to the index, with shares of Northern Star and Newcrest Mining rising 0.4% and 1.4%, respectively.


Energy companies were the only major laggards on the ASX200, as oil prices settled lower on poor demand prospects. Sector majors Woodside and Santos fell 0.4% and 1.7%, respectively.


Shares of Endeavour Group , a pub operator that operates poker machines, jump 2.6% on the back of the Labor Party's victory in NSW state election on Saturday, a political result which would mean less or no risk of gambling reforms in the state.


Local miners started the day in green as a rebound in underlying iron-ore prices on Friday lifted the sub-index. Mining giants BHP Group and Fortescue Metals added between 0.1% and 0.6%.


New Zealand's benchmark S&P/NZX 50 index rose 0.3% to 11,616.4 points.


(Reporting by Rishav Chatterjee in Bengaluru)


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