Aus shares end higher on banks, tech boost; US debt ceiling outcome in focus

Brainchip Holdings

19/05/2023 07:54

* 
      ASX200 up 0.3% for the week
    

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      Financials up 1.5%, tech gains 2.2%, gold down 1.2%
    

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      NZ50 up 1%
    

  
 (Updates to close)
    By Ayushman Ojha
       May 19 (Reuters) - Banking and technology sectors
tracked overnight gains on Wall Street to drive Australian
shares higher on Friday, backed by mounting optimism that a deal
to raise the U.S. debt ceiling could be reached within days.
    The S&P/ASX 200 index  .AXJO  gained 0.6% to close at
7,279.50, its highest since May 2. The benchmark rose 0.3% this
week.
    U.S. stocks closed higher for a second straight day on
Thursday after President Joe Biden and Republican Kevin McCarthy
reiterated their aim to strike a deal soon to raise the $31.4
trillion federal debt ceiling and agreed to talk as soon as
Sunday.  .N 
    "We are waiting very much on the debt ceiling outcome right
now, and if we get a quick resolve, we will see a decline in the
U.S. dollar, which will lift commodity prices, particularly
gold," said Brad Smoling, managing director at Smoling
Stockbroking.
    Back in Sydney, the heavyweight financials sub-index  .AXFJ 
advanced 1.5% with the 'big four' banks up between 1.3% and
1.8%.
    Technology stocks  .AXIJ  advanced 2.2%, tracking gains from
the tech-heavy Nasdaq Composite Index  .IXIC . BrainChip
Holdings  BRN.AX  and Xero Ltd  XRO.AX  gained 9.3% and 5.4%
respectively.
    Among individual stocks, Qantas Airways  QAN.AX  said it
expects its international capacity to reach pre-COVID levels by
March 2024. Shares were up 1.1%.
    The insurance broker and agency AUB Group  AUB.AX  jumped
5.9%, its highest in two years, after lifting its profit outlook
for fiscal 2023.
    Wealth manager AMP Ltd  AMP.AX  was fined $16 million for
billing dead clients for insurance and financial advice.
    Gold stocks  .AXGD  ended 1.2% lower as bullion prices were
on course for their biggest weekly drop in 3-1/2 months. The
country's largest gold miner, Newcrest Mining  NCM.AX , fell
1.9%.
    The Reserve Bank of New Zealand is expected to hike interest
rates by a final quarter point on Wednesday, a Reuters Poll
showed.
    The benchmark S&P/NZX 50 index  .NZ50  rose 1%, to close at
12,099.74.
    

 (Reporting by Ayushman Ojha in Bengaluru; Editing by Janane
Venkatraman)
 ((Ayushman.Ojha@thomsonreuters.com;))
 
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