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Financials, miners lead gains
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Australian govt adopts more favourable changes to petroleum tax
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Westpac reports 22% jump in H1 profit
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(Updates to close)
By Nausheen Thusoo
May 8 (Reuters) - Australian shares inched higher on
Monday, led by financials and mining stocks, with the country's
third-largest lender reporting a jump in first-half profit,
while investors digested U.S. jobs data pointing to a resilient
labor market.
The S&P/ASX 200 index rose 0.8% to 7,276.5-points at
the close of trade.
Financials added 0.7% to the bourse after Westpac
Banking Corp posted a 22% jump in its first-half net
profit.
However, Henry Jennings, senior analyst at Marcustoday
Financial Newsletter said that "with the banks having a very
cautious outlook right now, increasing competition, issues with
consumer spending and the upcoming mortgage cliff could affect
banks in the next six months or so."
Energy stocks advanced 2.5% after the government adopted favourable changes to the petroleum tax, ensuring that the load was shared across the industry and did not affect growth projects. Woodside Energy Group Ltd , the country's biggest independent oil and gas producer, was trading 2.9% higher, while closest rival Santos Ltd was up 2%.
In the U.S., the Labor Department reported job growth accelerating in April and wage gains increasing solidly, suggesting that the labor market has stayed strong despite the Federal Reserve tightening its monetary policy. Depending on how the economy reacts to the upcoming Australian budget and the Fed's rate hike decisions, the Reserve Bank of Australia might follow a similar route in the near future, Jennings said. In Sydney, miners added 1.6% to the benchmark, with behemoths BHP Group Ltd , Fortescue Metals Group Ltd and Rio Tinto Ltd rising between 1.5% and 2.4%. Lynas Rare Earths Ltd rose about 12% after its operating license in Malaysia to import and process rare earths was extended until Jan. 1 next year.
Chasing Wall Street higher, tech stocks advanced 1%.
New Zealand's benchmark S&P/NZX 50 index rose 0.5%
to finish the session at 11,942.49 points.
(Reporting by Nausheen Thusoo in Bengaluru; Editing by Sonia
Cheema)
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