🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Australia shares rise on mining, energy stocks; NZ hits record high

Published 16/05/2019, 04:27 pm
© Reuters.  Australia shares rise on mining, energy stocks; NZ hits record high
AUD/USD
-
AXJO
-
BHP
-
CBA
-
FMG
-
ANZ
-
RIO
-
NCM
-
ORG
-
RIO
-
WBC
-
WDS
-
AXMM
-
AXEJ
-
AXFJ
-
NZ50
-
AIA
-
CNU
-

* Aussie April unemployment rate rises to 8-month high

* Analysts see RBA June rate cut as distinct possibility

* Huawei blacklist, rising U.S.-China tensions cap gains

* NZ scales record high for second consecutive session (Updates to close)

May 16 (Reuters) - Australian shares rose on Thursday, bolstered by miners and energy stocks as prices of the commodities surged.

Expectations of an interest rate cut by the Reserve Bank of Australia as early as June also lifted sentiment.

The S&P/ASX 200 index .AXJO ended up 43.60 points or 0.7% to 6,327.80. The benchmark rose 0.7% on Wednesday.

Australia's unemployment rate rose to the highest in eight months while full-time jobs fell in April, official data showed. New jobs created beat expectations, however, all of the increase was led by part-time work, as full-time jobs dropped. the RBA's perspective, unemployment and underemployment are heading in the wrong direction. The increased slack in the labour market will not help progress towards its inflation target," Catherine Birch, senior economist at ANZ said in a note.

"Coupled with the soft employment component of Tuesday's NAB survey, a June rate cut must be a distinct possibility," Birch added.

On the downside, broader sentiment soured after the United States hit Chinese telecom giant Huawei with severe sanctions in the midst of shaky trade negotiations with China, adding to rising tensions. the index, miners .AXMM surged 1.3% to an over four-week high, as Chinese iron ore futures hit a record high on robust demand and tight supply.

BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX shed mid-session losses to close 0.9% and 1% higher, respectively.

The smaller Fortescue Metals Group FMG.AX soared 3.2%.

Amid the Sino-U.S. tension, safe-haven gold stocks tacked on 1.8%. The biggest gold miner, Newcrest Mining NCM.AX added 2.2%, while a number of smaller miners also notched solid gains.

Energy stocks .AXEJ rose 2.2% amid growing fears of supply disruptions in the Middle East. Origin Energy ORG.AX gained 4% while Woodside Petroleum WPL.AX added 1.6%.

Financial stocks .AXFJ inched lower, dragged by the country's second-biggest lender Westpac Banking Corp WBC.AX which ended down 3.9% as shares traded ex-dividend.

A robust performance among other lenders almost entirely offset Westpac's losses. Commonwealth Bank of Australia CBA.AX put on 1.1% while Australia and New Zealand Banking Group ANZ.AX gained 1.4%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5% or 45.41 points to finish the session at a record 10,176.99.

Communications infrastructure services provider Chorus CNU.NZ rose 3.1%, while Auckland International Airport AIA.NZ gained 2.5%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.