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Australia shares end at 2-month high, but Brexit worry caps gains

Published 16/01/2019, 04:56 pm
Updated 16/01/2019, 05:00 pm
© Reuters.  Australia shares end at 2-month high, but Brexit worry caps gains

* Financials, tech stocks lift Aussie benchmark

* Gold firms finish lower

* Dairy companies lead NZ gains (Updates to close)

Jan 16 (Reuters) - Australian shares gained for a second consecutive session on Wednesday, building on the previous day's rally driven by hopes of more stimulus measures from its biggest trading partner China.

The S&P/ASX 200 index .AXJO firmed 0.4 percent to 5,835.2 at the close of trade, its highest close since Nov. 12. The benchmark had risen 0.7 percent on Tuesday.

The session's gains, however, were curbed as investors took to the sidelines after British lawmakers trounced Prime Minister Theresa May's deal to withdraw Britain from the European Union.

Investors will turn their attention to a confidence vote on May's government by lawmakers, scheduled later in the day.

May's defeat overnight triggered political upheaval that could lead to a disorderly exit from the European Union on March 29 or even to a reversal of the 2016 decision to leave.

Financial stocks .AXFJ , the Australian benchmark's largest constituents, rose 0.6 percent, lifted by lenders Westpac Banking Corp WBC.AX and Australia and New Zealand Banking Group ANZ.AX , which closed 0.9 percent and 0.8 percent higher, respectively.

Aussie technology stocks .AXIJ climbed 1.7 percent to a six-week high, tracking a surge in Wall Street peers after streaming service Netflix Inc NFLX.O announced plans to raise fees for U.S. subscribers. .N

Data services provider Appen Ltd APX.AX was the top percentage gainer among tech stocks in the benchmark, closing 4.4 percent higher, while software maker WiseTech Global WTC.AX finished up 3.5 percent.

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Energy stocks .AXEJ also lent support with a 0.5 percent gain, helped by strength in crude oil prices.

Oil prices were steady as signs of a global economic slowdown were countered by OPEC-led supply cuts which helped support Brent crude futures above $60 per barrel. O/R

Energy services firm WorleyParsons WOR.AX topped the gainers in the energy sub-index, adding more than 3 percent.

Losses in metals and mining stocks .AXMM capped broader market gains, with global mining giants BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX losing 0.4 percent and 0.5 percent, respectively.

Gold stocks .AXGD dropped 1.5 percent, snapping two sessions of gains.

Major gold producers Newcrest Mining NCM.AX and Evolution Mining EVN.AX closed 1.5 percent and 1 percent lower, respectively.

Elsewhere, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.7 percent higher to finish the session at 9,027.44.

Dairy company A2 Milk ATM.NZ gained 3.9 percent to a near 4-month high, while Synlait Milk SML.NZ strengthened 3.3 percent.

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