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Australia shares higher on metal prices; NZ falls

Published 24/01/2017, 12:28 pm
© Reuters.  Australia shares higher on metal prices; NZ falls
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Jan 24 (Reuters) - Australian shares rose on Tuesday, lifted by materials, as a weaker U.S. dollar boosted copper and gold prices.

The S&P/ASX 200 index .AXJO was 0.4 percent, 23.228 points, higher at 5,634.2 by 0057 GMT.

The dollar fell on Monday as investors spooked by Donald Trump's protectionist views shifted away from riskier assets, resulting in lower bond yields and higher gold and copper prices. FRX/ GOL/ MET/L

The ASX mining index .AXMM comprising of major copper and gold miners, gained 1.5 percent in early trade, with Bluescope Steel BSL.AX and BHP Billiton (LON:BLT) BHP.AX contributing the most to the broader index.

Gains in base metal prices across European markets is lending support to miners including BHP, said Tony Farnham, an economist with Patersons Securities, adding that BHP is reflecting the rally it had in U.S. last night.

BHP Billiton added 0.8 percent, tracking a one-percent gain in its U.S. ADRs BHP.N , while Bluescope Steel rose as much as 8.5 percent to a six-year high, after it raised its first-half earnings forecast by about 18 percent. the lead, Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX each added over 1.3 percent.

The healthcare sector, which makes up more than six percent of the broader index, also saw gains, with Resmed Inc's Sydney-listed shares RMD.AX rising 7.6 percent to their highest in four months.

The San Diego, California-based company's U.S. shares RMD.N rose 8.5 pct at $69 after hours, after it reported better-than-expected second-quarter adjusted profit and revenue. CSL Ltd CSL.AX rose half a percent, its third session of gains in last four. The company upgraded its forecast for FY17 last week. stocks saw some early selling before reversing their direction towards positive territory.

"People saw a run-up in financials and now they are asking what have we got to justify buying them even more. And that is the challenge," Farnham said.

Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX overcame early losses to rise over 0.6 percent each.

Fund manager Challenger Ltd CGF.AX and investment bank Macquarie Group MQG.AX also provided support, rising as much as 1.4 percent and 0.7 percent, respectively.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2 percent, or 20.27 points, to 7,047.58.

Losses were led by materials and industrial stocks, with Fletcher Building Ltd FBU.NZ falling 1.4 percent while Auckland International Airport AIA.NZ down 1.2 percent.

Telcos saw some losses, with Spark New Zealand SPK.NZ falling about half a percent.

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