Australian shares gain as financials shine; market focus on inflation data

Fisher & Paykel Healthcare

23/02/2024 06:29

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      Financials log 13th weekly gain
    

        * 
      Tech stocks hit two-year high
    

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      Gold stocks drop to four-month low
    

  
    By Sneha  Kumar
       Feb 23 (Reuters) - Australian shares closed higher on
Friday, lifted by heavyweight financials, as market participants
priced in the possibility of interest rates in the country
staying higher for longer ahead of a key domestic inflation
report due next week. 
    The S&P/ASX 200 benchmark index  .AXJO  ended 0.4% higher at
7,643.6 points. The benchmark fell 0.2% during the week. 
    Financial stocks typically bask in the benefits of operating
in a high-interest-rate environment.
    Leading the climb, Australian lenders  .AXFJ  advanced 0.7%,
with the 'Big Four' banks adding between 0.3% and 1.1%. The
sub-index marked its thirteenth weekly gain.
    Investors shifted their focus to Australia's inflation print
for further cues on the Reserve Bank of Australia's policy
decision next month, after news that the central bank had
considered hiking rates by another quarter-point shocked
markets.     
    Tech stocks  .AXIJ  climbed 1.5% to a two-year high after AI
darling Nvidia's  NVDA.O  stunning results sparked a wave of
record highs from Asia to Europe and the United States.
 MKTS/GLOB  
    "Although the Australian market did not reach new record
today, it have been positively bolstered by the prevailing
broad-based optimism in the global money market," said Hebe
Chen, market analyst, IG Markets. 
    ASX-listed shares of Block  SQ2.AX  emerged as top gainers
in the benchmark index, adding 16.5% to hit their highest level
since last August. The Afterpay-owner reported
better-than-expected core earnings for the quarter. 
    Miners  .AXMM  fell 2.2% this week, losing for the third
consecutive week. 
    "The mining sector has undergone a reality check this week
as both BHP and RIO delivered lackluster earnings reports," Chen
added.
    Gold stocks  .AXGD  shed 4.2% during the week to hit a
four-month low. 
    Across the Tasman Sea, New Zealand's S&P/NZX 50 index
 .NZ50  rose 0.3% to 11,719.82.
    Top gainers Warehouse  WHS.NZ  and Fisher & Paykel
Healthcare  FPH.NZ  added 3.8% and 2.8%, respectively.  
             

 (Reporting by Sneha Kumar in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((sneha.kumar@thomsonreuters.com))
 
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