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Australia shares flat as tech stocks track Wall Street lower

Published 25/03/2021, 11:51 am
© Reuters.
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* Energy stocks rise as oil prices climb

* Healthcare stocks benefit from weaker Aussie dollar

* Cboe Global Markets buys ASX competitor Chi-X Australia

By Soumyajit Saha

March 25 (Reuters) - Australian shares traded flat early Thursday, as gains in the energy and healthcare sectors were offset by losses among technology stocks that tracked their Wall Street peers lower.

The S&P/ASX 200 index .AXJO was flat at 6,778.8, as of 2323 GMT. The benchmark closed 0.5% higher on Wednesday.

The three main U.S. indexes fell in overnight trade as optimism about the economic recovery by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen was unable to halt a decline in technology shares for a second straight day. .N

Nikkei futures NKc1 were up 0.04%, S&P 500 E-minis futures EScv1 rose 0.14% and the yield on benchmark 10-year Treasury notes US10YT=RR rose to 1.6137%.

Energy stocks .AXEJ rose 0.9% as oil prices jumped after a ship ran aground in the Suez Canal, potentially tying up global crude shipments. O/R

Gas explorers Woodside Petroleum Ltd WPL.AX and Santos Ltd STO.AX advanced 1.3% and 2.4%, respectively.

Export-reliant healthcare stocks .AXHJ extended gains as the Australian dollar weakened. A weaker local currency helps earnings of companies earning in U.S. dollars.

Drug developer CSL Ltd CSL.AX and diagnostic services provider Sonic Healthcare SHL.AX gained 0.4% and 1.9%, respectively.

Australian tech stocks .AXIJ dropped 1.4%, with buy-now-pay-later co Afterpay APT.AX and artificial intelligence developer Appen APX.AX falling 2.9% and 1.9%, respectively.

The mining sub-index .AXMM was trading slightly lower, with global miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX losing 0.7% and 0.9%, respectively.

Meanwhile, exchange operator Cboe Global Markets Inc CBOE.Z said on Thursday it would acquire the operator of Chi-X Australia, the country's second-largest securities exchange and the only competitor to ASX Ltd ASX.AX . of ASX Ltd fell as much as 1.6% in early trade.

New Zealand's benchmark S&P/NZX 50 index .NZ50 edged up 0.3%, helped by gains among industrial and tech stocks.

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