off-the-wire

Australian shares hit over 3-week high on energy and tech gains; RBA decision in focus

Kitco Media
By Reuters
Published:
Updated:
Reuters
April 3 (Reuters) - Australian shares rose on Monday to their highest in more than three weeks, helped by gains in technology and energy stocks, while investors awaited an interest rate decision from the Reserve Bank of Australia on Tuesday. The S&P/ASX 200 index climbed 0.8% to 7,235.0 by 0044 GMT, hitting its highest since March 10. The benchmark rose 0.8% on Friday. Hopes have grown that the Reserve Bank of Australia (RBA) could leave its benchmark interest rates unchanged on April 4 as recent economic data suggests 350 basis points (bps) of rate hikes since May last year have started to impact growth. However, 14 of 27 economists polled by Reuters predicted that the RBA could go for a final 25-bp hike, while the remaining 13 saw a pause at 3.60%. Energy stocks rose 3.5%, as crude oil prices jumped following a surprise announcement by OPEC+ to cut production further in an effort to support market stability. Sector giants Santos and Woodside jumped 4% and 4.4%, respectively. Tech stocks tracked Wall Street higher and were last up 2.2%, with Xero adding more than 2%.


Financials rose 0.9%, with the big four banks gaining between 0.5% to 1.2%. Meanwhile, export-reliant miners tumbled 0.4%, with behemoths BHP Group , Rio Tinto and Fortescue Metals down between 0.2% and 0.8%. Gold stocks fell 1.1%, with sector heavyweights Newcrest Mining and Northern Star Resources down 0.9% each. Among single stocks, Coles Group gained 0.6% after the country's No. 2 grocer acquired two automated milk processing facilities for A$105 million. Netwealth Group fell 8.2% to become the top looser on the index, as net platform flows in the third quarter did not meet brokerage forecast.


New Zealand's benchmark S&P/NZX 50 index was largely flat at 11,884.59. Fonterra Co-operative Group fell 1.3% after trimming its farmgate milk price range forecast for the 2022/23 season for the fourth time.
(Reporting by Nausheen Thusoo in Bengaluru; Editing by Subhranshu Sahu)


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