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Australia shares jump 1% on financials, mining boost

Published 31/03/2021, 11:47 am
Updated 31/03/2021, 11:48 am
© Reuters.

* Financials rise, with "Big Four" banks leading gains

* Suncorp reports claims for damages from flooding on East Coast

* Weak bullion prices hurt gold stocks

March 31 (Reuters) - Australian shares jumped slightly more than 1% on Wednesday, driven by heavyweight financials and mining stocks, and as traders locked in positions to rebalance at the end of the month.

The S&P/ASX 200 index .AXJO was up 1.06% at 6,738.4 points, as at 2330 GMT. The benchmark was on track to gain 2.2% for the month.

"I think this movement is mostly institutional investors who make trades on a monthly basis locking in the performance that they have had over the month by reversing their previous actions," Michael McCarthy, chief market strategist at CMC Markets said.

"The material sector that had a good run but then recently came under pressure is doing well, whereas some stocks such as utility and healthcare, which had good moves recently are the under-performers today."

Nikkei futures NKc1 were down 0.15% and S&P 500 E-minis futures EScv1 edged up 0.06%. The yield on benchmark 10-year Treasury notes US10YT=RR elevated to 1.71%.

The energy sub-index .AXEJ rose 1.6%, with independent coal miner Whitehaven Coal Ltd WHC.AX and gas explorer Santos STO.AX advancing 2.3% and 2.13​%, respectively.

Mining stocks .AXMM gained 1.6%, with global miners BHP BHP.AX and Rio Tinto (LON:RIO) RIO.AX advancing 3% and 2.4% respectively.

Financial stocks .AXFJ climbed 1.1%, with the so-called "Big Four" banks rising between 1% and 1.5%.

Suncorp Group Ltd SUN.AX rose 1% in early trade after the insurer said it had received 7,600 claims for damages from severe flooding along Australia's east coast, and expects the number will rise in coming days. the trend, gold stocks .AXGD dipped alongside weak bullion prices, with heavyweight Newcrest Mining NCM.AX losing nearly 1%.

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New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.2% to 12,446.76, with cancer diagnostics firm Pacific Edge Ltd PEB.NZ gaining the most on the benchmark.

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