Global Markets | Australian shares hit record high for second day; miners, health, tech fuel rally
Australian stocks hit a fresh record high for the second day, driven by strong performances from miners, healthcare, and tech sectors amid a robust earnings season and rising commodity prices. Miners, in particular, saw significant gains, with BH...
By Reuters |
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Australian shares scaled an all-time high for a second straight session on Thursday, powered by heavyweight miners, healthcare majors and tech stocks on a buoyant earnings season and firmer commodity prices.
The S&P/ASX 200 index closed 0.5% higher at 9,175.30 points after breaching the 9,200 level for the first time earlier in the session. The benchmark had notched a record close of 9,128.30 on Wednesday.
Miners climbed 1.2% to close at a new peak.
"Miners are still enjoying strong earnings momentum, with most seeing meaningful earnings upgrades and paying out sizable dividends," said Jun Bei Liu, portfolio manager at Ten Cap. The sector will continue to log inflows directed out of growth stocks, she added.
Index heavyweight BHP climbed 2.2% to close at a record high of A$57.75, while Rio Tinto added 3.7%. A rise in copper prices due to the post-Lunar New Year pickup in Chinese import demand added to the gains.
Healthcare stocks rose 1.6%, with hospital operator Ramsay Health Care jumping 10.4% on beating first-half profit expectations. Telix Pharmaceuticals advanced 10.9%.
Technology stocks jumped 5.2%, tracking a global rally after Nvidia's blockbuster results calmed AI jitters.
Qantas Airways slumped as much as 10.1% after its international arm posted an unexpected profit drop, pressured by rising expenses and weaker U.S.-bound economy travel demand.
Energy and gold stocks capped gains, falling 1.5% and 0.8%, respectively.
Data released on Wednesday showed Australian consumer prices rose more than expected in January, heightening the risk of a follow-up interest rate hike. Banks finished little changed.
The shift away from rate-sensitive stocks has been building in recent months, and Liu sees further selling, noting that markets have not fully priced in the high probability of a May hike.
New Zealand's benchmark S&P/NZX 50 index closed up 1.1% at 13,670.71 points.
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The S&P/ASX 200 index closed 0.5% higher at 9,175.30 points after breaching the 9,200 level for the first time earlier in the session. The benchmark had notched a record close of 9,128.30 on Wednesday.
Miners climbed 1.2% to close at a new peak.
"Miners are still enjoying strong earnings momentum, with most seeing meaningful earnings upgrades and paying out sizable dividends," said Jun Bei Liu, portfolio manager at Ten Cap. The sector will continue to log inflows directed out of growth stocks, she added.
Index heavyweight BHP climbed 2.2% to close at a record high of A$57.75, while Rio Tinto added 3.7%. A rise in copper prices due to the post-Lunar New Year pickup in Chinese import demand added to the gains.
Healthcare stocks rose 1.6%, with hospital operator Ramsay Health Care jumping 10.4% on beating first-half profit expectations. Telix Pharmaceuticals advanced 10.9%.
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Technology stocks jumped 5.2%, tracking a global rally after Nvidia's blockbuster results calmed AI jitters.
Qantas Airways slumped as much as 10.1% after its international arm posted an unexpected profit drop, pressured by rising expenses and weaker U.S.-bound economy travel demand.
Energy and gold stocks capped gains, falling 1.5% and 0.8%, respectively.
Data released on Wednesday showed Australian consumer prices rose more than expected in January, heightening the risk of a follow-up interest rate hike. Banks finished little changed.
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The shift away from rate-sensitive stocks has been building in recent months, and Liu sees further selling, noting that markets have not fully priced in the high probability of a May hike.
New Zealand's benchmark S&P/NZX 50 index closed up 1.1% at 13,670.71 points.
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For more information on DIARIES & DATA:
U.S. earnings diary
Wall Street Week Ahead
Global Economy Week Ahead
For latest top breaking news across all markets
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