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Australia shares up on rally in oil; NZ down

Published 12/01/2017, 12:38 pm
Updated 12/01/2017, 12:50 pm
© Reuters.  Australia shares up on rally in oil; NZ down

Jan 12 (Reuters) - Materials, energy and financials lifted Australian shares on Thursday after a weakened U.S. dollar drove up oil prices by the most in more than a month.

The S&P/ASX 200 index .AXJO gained 0.3 percent or 20 points to 5,791 by 0115 GMT. The benchmark closed 0.2 percent higher on Wednesday.

"The reason that the Australian market is higher is because of its commodities exposures, another gain for gold and a very strong gain for oil are two of the key features supporting the market today," said Michael McCarthy, chief market strategist at CMC Markets.

Oil prices jumped more than 2.5 percent on Wednesday following two straight sessions of losses after the dollar fell on disappointment with President-elect Donald Trump's media conference, and on news that Saudi Arabia trimmed supplies to some Asian buyers. O/R and gas giant Woodside Petroleum WPL.AX was up as much as 1.5 percent to its highest in 15 months while Santos Ltd STO.AX gained 1.2 percent.

After Trump's much-anticipated news briefing failed to provide clarity on expected stimulus plans, the dollar fell sharply to one-month lows, pushing gold to a seven-week high on Wednesday. MKTS/GLOB

"It's a very unpredictable time, once again markets were disappointed by the lack of detail around stimulus plans in last night's press conference McCarthy.

Gold miner Northern Star Resources Ltd NST.AX rose 0.5 percent, extending gains into a third day.

Sentiment was also boosted by Chinese steel and iron ore futures gaining for a third session on Wednesday and hitting their highest level in three weeks. IRONORE/

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Global miner Rio Tinto (LON:RIO) RIO.AX climbed as much as 1.7 percent to its highest since December 12, while BHP Billiton (LON:BLT) BHP.AX gained 1.3 percent, extending gains into a second day.

The metals and mining index .AXMM rose as much as 1.3 percent, hitting its highest since September 19, 2014.

Financials was up with the "Big Four" banks gaining between 0.2 percent and 0.5 percent.

Qantas Airways Ltd QAN.AX was among the biggest gainers in the index, rising as much as 5 percent to hit a 4-month high.

Bucking the trend, healthcare sector declined after U.S. Trump said pharmaceutical companies were "getting away with murder" in the prices they charged the government for medicines. biggest pharmaceuticals company by market cap CSL Ltd CSL.AX slid as much 1.6 percent, posting its biggest intraday percentage loss in a month.

Organic baby formula maker Bellamy's Australia Ltd BAL.AX was the biggest loser on the benchmark, falling 15.5 percent after it cut its revenue forecast and appointed a temporary new CEO. Zealand's benchmark S&P/NZX 50 index .NZ50 declined 0.3 percent or 18.5 points to 7,069, ending a three-session run of gains.

Telecommunications was the biggest drag on the index with Spark New Zealand Ltd SPK.NZ shedding as much as 2.8 percent to post its biggest intraday percentage loss since December 9, 2016.

For more individual stocks activity click on STXBZ

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