Tech, financial firms lift Australian stocks for seventh day

Australian shares closed higher on Wednesday, aided by an extended rally in technology and banking stocks, as global sentiment improved on hopes of a possible end to the Russia-Ukraine conflict.

The S&P/ASX 200 ended up 0.7% at 7,514.5, marking a seventh straight session of gains.

Russia on Tuesday promised to scale down military operations around Ukraine's capital Kyiv, while Ukraine proposed adopting a neutral status in face-to-face negotiations.


CommSec Market Analyst Steven Daghlian said that though peace talks were supporting sentiment, investors should remain wary of the continuous rise in bond yields which is not a positive development for tech firms.

Australian technology stocks were the top gainers on the benchmark on Wednesday, adding over 3.8% and hitting their highest level in 10 weeks.

ASX-listed shares of Block Inc soared 6.1%, while accounting software provider Xero Ltd gained 5.3%, its highest since mid-February.

Financials added nearly 1% in their third straight session of gains. Westpac added close to 1%, and both National Australia Bank and Commonwealth Bank of Australia climbed 0.8% and 0.7%, respectively.

Commodity-linked stocks, however, continued to weigh on the benchmark for a second consecutive session. Miners slipped 0.3%, while energy and gold stocks also ended the day marginally lower.

"We're seeing mining and energy stocks coming under a little bit of pressure and I think its a mix of Russian-Ukraine peace talks and also the lockdown in Shanghai," Daghlian added.

New Zealand's benchmark S&P/NZX 50 index ended 1.5% higher at 12,098 points.