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Energy sector tops gains on ASX
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LTR leads gains for lithium stocks
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Banks rejoice receding global banking crisis fears
By Riya Sharma March 28 (Reuters) - A rally in lithium and commodity stocks, and a strong rebound in financials helped Australian shares close higher on Tuesday, while the sentiment was also aided by reduced fears of a full-blown global financial crisis. The S&P/ASX 200 index finished 1% higher at 7,034.1 points, its best close in nine sessions. Global risk sentiment improved on optimism that stress in the banking sector would be contained after a U.S. regulator-backed deal by First Citizens BancShares to buy failed Silicon Valley Bank soothed wider worries about a global banking crisis. Back in Sydney, banks gained 1.1% with the "Big Four" lenders advancing between 0.9% and 1.4%. Domestic lithium shares rallied sharply after battery metals explorer Liontown Resources rejected a A$5.50 billion ($3.68 billion) buyout bid from top lithium producer Albemarle Corp . Liontown soared 67.9% to a record high, while other lithium players like Pilbara Minerals , Allkem , and IGO Ltd gained between 6.8% and 13.7%.
Energy stocks added 4.1% on higher oil prices. Sector majors Woodside and Santos gained 4.8% and 3.1%, respectively. Meanwhile, February retail sales grew 0.2% month-on-month, compared with a 1.8% rise in January, indicating that retail spending growth had slowed sharply in Australia. Investors' focus would now be on the monthly inflation report on Wednesday, which is likely to help shape expectations for the Reserve Bank of Australia's (RBA) policy meeting on April 4. "For the RBA, the retail sales data shouldn't argue against a hike in April in the context of strong employment. Overall, the data shows the consumer has not rolled over, but is still consistent with a slowing in consumption growth," said Taylor Nugent, an economist at National Australia Bank. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index edged up 1.4% to 11,771.3 points. ($1 = 1.4954 Australian dollars) (Reporting by Riya Sharma in Bengaluru; editing by Uttaresh Venkateshwaran)
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