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Australia shares gain on mining stocks, NZ steady

Published 01/02/2017, 05:34 pm
Updated 01/02/2017, 05:40 pm
© Reuters.  Australia shares gain on mining stocks, NZ steady
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Feb 1 (Reuters) - Australian shares advanced on Wednesday, as a tumbling greenback sent mining and oil stocks into positive territory.

The S&P/ASX 200 index .AXJO ended 0.57 percent, or 32.289 points, higher at 5,653.2 at the close of trade. The benchmark fell 0.7 percent on Tuesday.

The dollar faltered against a basket of currencies and suffered its worst January in three decades after U.S. President Donald Trump criticised key trading partners. MKTS/GLOB

Global stocks remain subdued as Trump's comments led to a risk-off mood. haven assets such as gold glittered at a one-week high, while materials held on to strong gains from earlier in the session. GOL/

Fortescue Metals Group Ltd FMG.AX rallied as much as 4.7 percent to hit a near six-year high, as the world's fourth-largest iron ore miner expected a boost in iron ore demand after China's decision to close steel mills that use scrap metal. heavyweights BHP Billiton (LON:BLT) Ltd BHP.AX and South32 Ltd S32.AX rose 1.7 percent and 1.1 percent, respectively.

The country's biggest gold producer Newcrest Mining Ltd NCM.AX rose as much as 3.1 percent in its third straight session of gains.

Westpac Banking Corp WBC.AX , one of the index's top performers, perked up 0.9 percent while international investment advisor AMP Limited AMP.AX rose 1 percent.

Oil markets were range-bound on a surplus of supplies. Oil and gas giant Woodside Petroleum Ltd WPL.AX edged up 1.4 percent. Energy Ltd SXY.AX surged as much as 8.9 percent after the oil and gas explorer lined up U.S. partners to fund a gas project, which could help ease a pending gas shortage in Australia's east. market also found support from strong property data.

An index of home prices for the combined capital cities climbed 0.7 percent in January, according to property consultant CoreLogic. housing prices, however, posed a worry for the Reserve Bank of Australia (RBA), which had hoped the market would have cooled following the implementation of tighter lending rules on banks.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended flat at 7,055.5 points, as the gains in industrials were offset by losses in material stocks.

Port of Tauranga Ltd POT.NZ jumped to its highest ever, surging as much 3.8 percent, while Meridian Energy Ltd MEL.NZ rose more than 3 percent.

Fletcher Building Ltd FBU.NZ fell 1.6 percent, while Z Energy Limited ZEL.NZ lost 2.2 percent.

Sentiment was boosted as New Zealand's unemployment surged 5.2 percent in December, from an eight-year low of 4.8 percent, suggesting a lower chance of a rate hike later in the year.

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