Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Australia shares track U.S. peers higher; Fed in focus

Published 16/09/2020, 04:52 pm
© Reuters.

* BNPL stocks lead tech sector higher

* Seek gains most in more than five months

* NZ economy seen doing better in near term (Updates to close)

By Deepali Saxena

Sept 16 (Reuters) - Australian shares followed their U.S. peers higher on Wednesday, led by tech stocks, as investors awaited the Federal Reserve's policy statement due later in the day for its view on the U.S. economy.

The benchmark S&P/ASX 200 index .AXJO rose 1% to a one-week closing high, with Seek Ltd SEK.AX soaring 13% at one point after a report indicated that Alibaba (NYSE:BABA) BABA.N 9988.HK was eyeing an investment in its Chinese unit.

The online jobs portal later said it was in talks with a number of parties on whether to bring new investors into the unit. The company did not name the parties it was talking to. in the day, the Fed will conclude its two-day meeting, its first since adopting a more accommodative approach to inflation and pledging to keep interest rates low for longer.

Wall Street rose overnight on hopes for an ultra-accommodative policy stance, with the tech-heavy Nasdaq .IXIC climbing the most. .N

James Tao, a market analyst at CommSec, said investors were waiting for the Fed chairman's commentary given expectations that the central bank will keep interest rates on hold.

Australia's tech stocks .AXIJ climbed 2.4%, with buy-now-pay-later firms bouncing. Bellwether Afterpay APT.AX hit a near two-week high and closed 4% higher.

Among the 'big four' banks, Commonwealth Bank of Australia CBA.AX rose 1%, while Australia and New Zealand Banking Group ANZ.AX dropped 0.3%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

CSL CSL.AX , the country's biggest biotech firm, added nearly 1.4%, while mining giants Rio Tinto (LON:RIO) RIO.AX and BHP BHP.AX rose more than 2% each.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 ended 0.4% higher at 11,814.71.

Kathmandu Holdings KMD.NZ and Arvida Group ARV.NZ were the top gainers on the benchmark, rising nearly 2.5% each.

Forecasts released by the treasury department showed the economy bounced back faster from a lockdown put in place to limit the spread of the COVID-19 pandemic. island nation will report its second-quarter GDP numbers on Thursday.

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.