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Australia shares edge up on tech, gold firms; NZ scales new peak

Published 19/12/2019, 12:27 pm
© Reuters.  Australia shares edge up on tech, gold firms; NZ scales new peak
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* Most catalysts have passed, markets now laying in wait - broker

* Financials dragged by insurers after QBE's bleak outlook on Wed

* NZ index hits record high

* NZ Q3 GDP grows 0.7% Q/Q, faster than expected

By Rashmi Ashok

Dec 19 (Reuters) - Australian shares inched up in narrow ranges on Thursday buoyed by gains in technology and gold firms, with investors largely on the sidelines ahead of the Christmas break.

The S&P/ASX 200 index .AXJO rose 4.5 points or 0.1% to 6,855.9 by 0052 GMT. The benchmark closed flat across Tuesday and Wednesday as well.

Many macro developments markets were expecting including Brexit and a trade truce have now been addressed, said Brad Smoling, managing director at Smoling Stockbroking.

However, markets are likely to remain on edge given the steep plunge U.S. stocks posted in December last year, as well as developments on the ongoing impeachment proceedings of U.S. President Donald Trump. market is breathing a half sigh of relief, but is still very cognitive that we haven't finished the year yet," he said.

In Dec. 2018, the S&P 500 .SPX fell over 9%, hurt by an escalation in the Sino-U.S. trade war, U.S. interest rate hikes and slowing corporate growth. The Australian benchmark managed to escape with just a 0.3% drop across the same period.

Gold stocks .AXGD recovered from early losses to add 0.1%, with Northern Star Resources NST.AX putting on 2.2%, while Ramelius Resources RMS.AX added 3.1%.

Technology stocks .AXIJ rose 0.6%, helped by software maker Wisetech Global WTC.AX which rose 2.7% and Link Administration Holdings LNK.AX which added 1.7%. Xero XRO.AX gained 1%.

Meanwhile, financials .AXFJ traded flat, weighed by insurers a day after the index's second-largest insurer QBE Insurance Group QBE.AX flagged higher claims payouts at its North American crop business in 2019.

No. 1 insurer Insurance Australia Group Ltd IAG.AX fell 1.7% while Suncorp Group SUN.AX lost 0.3%. QBE, however, managed to recover 0.5% after a steep fall in the prior session.

Offsetting the sector's losses, wealth manager AMP AMP.AX , fund manager IOOF Holdings IFL.AX and investment bank Macquarie Group MQG.AX all gained more than 1% each.

Elsewhere, New Zealand's benchmark S&P/NZX 50 index .NZ50 logged robust gains, adding 0.8% to 11,415.52 points, hitting a record high.

The index was boosted after data showed New Zealand's economy grew at a faster-than-expected pace in the third quarter on robust retail spending, lifting sentiment. of Sky Network Television SKT.NZ rose most, adding 5.6% after the television broadcaster agreed to buy entertainment streaming service Lightbox and merge it with its own entertainment streaming service Neon.

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