Global Markets | Australian shares gain as investors pick up battered stocks; banks lead

Australian shares eked out modest gains on Thursday as investors picked up beaten-down bank, energy, and tech stocks, following a two-day rout triggered by an ‌escalating war ⁠in ⁠the Middle East.

The S&P/ASX 200 climbed 0.4% to 8,940.30 points, after sliding 3.2% over the previous two sessions. Global equities rallied following a significant selloff in the prior sessions, tracking gains from U.S. equities overnight. In Australia, financials led the advance on Thursday, rising 0.8% for its strongest session since February 19. Three among the "Big Four" banks rose between ⁠0.4% and ‌0.6%.

Kai Chen, a director at investment advisory firm MPC Markets, attributed it to dip-buying.


Though Australian shares tumbled earlier ⁠in the week, the losses were not as pronounced due to a larger index composition towards resources and energy stocks, said Chen.

The ASX's "energy and materials tilt meant the Middle East disruption was actually a partial positive for a chunk of the index, cushioning the downside in a way that Tokyo and Seoul couldn't replicate," Chen said. Energy firms climbed 0.8% on the back ‌of higher oil prices. Oil major Woodside's fell 1% on ex-dividend trade, while smaller rival Santos added 1%. Tech and healthcare stocks gained 4.6% and ⁠1.9%, respectively. Capping some gains, the broader mining sub-index slipped 0.5%, largely dragged by BHP's 1% decline as it traded ex-dividend. However, rivals Rio Tinto and Fortescue gained 1.2% and 2.1%, respectively, supported by a jump in iron ore prices after top consumer China unveiled promising economic measures. Gold stocks fell 1.5% to log their third straight session of losses. New Zealand's benchmark S&P/NZX 50 index nearly recouped Wednesday's losses, rising 0.6% to 13,617.89.