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Australian shares rise, led by financials; NZ up

Published 29/01/2018, 11:59 am
© Reuters.  Australian shares rise, led by financials; NZ up

* Aussie shares up 0.4 pct

* Banks gain the most and oil prices support energy stocks

* NZ shares up 0.2 percent as telecom and utilities firm

By Aditya Soni

Jan 29 (Reuters) - Australian shares firmed on Monday, led by financials, taking a cue from Wall Street which closed at record levels after strong earnings reports.

Boosted by the latest round of earnings including Intel INTC.O and AbbVie ABBV.N , the three main U.S. indexes climbed to record closing highs on Friday. .N

"Clearly positive leads from U.S. markets are helping the Australian share market, so it is no surprise to see the bounce" said Michael McCarthy, chief market strategist at CMC Markets.

The S&P/ASX 200 index .AXJO rose 0.4 percent or 25.00 points to 6,075.00 by 0044 GMT. The benchmark closed marginally lower on Thursday.

Australian banks rose, following their U.S. counterparts, with the financial index .AFXJ climbing 0.4 percent.

Commonwealth Bank of Australia (CBA) CBA.AX rose 0.5 percent, while Westpac Banking Corp WBC.AX firmed 0.7 percent.

CBA, Australia's largest lender by market cap, named retail banking head Matt Comyn as chief executive on Monday. The bank said its Comyn's appointment seeks to maintain the bank's operational continuity while trying to improve its reputation amid challenging trading conditions. was among the top performing sectors, with CSL Ltd CSL.AX and Australian shares of Resmed Inc RMD.AX hitting record highs.

Energy stocks also showed gains, underpinned by higher oil prices.

Oil prices settled higher on Friday after hitting three-year highs, with crude also posting a weekly gain as a weaker U.S. dollar underpinned prices. O/R

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Oil and gas company Woodside Petroleum Ltd WPL.AX rose 0.9 percent to a two-week high, on track for fourth session of consecutive gains.

"Energy stocks are definitely rising on the back of the rally in oil prices, though the focus in the sector could also be reflecting the fact that we have had a takeover bid in the sector with Mitsui out of Japan bidding for AWE," added McCarthy.

Japan's Mitsui & Co 8031.T made a $481 million offer to buy Australia's AWE Ltd AWE.AX , trumping bids from two other companies that are all vying for a stake in the promising onshore Waitsia gas field. of AWE Ltd AWE.AX surged 16.5 percent to a near two and a half year high after the bid.

On the other hand, real estate stocks were the biggest drags, with Westfield Corp WFD.AX falling 0.4 percent, while Scentre Group SCG.AX dipped 1.2 percent.

Materials stocks gained slightly despite a fall in commodities prices, with global miner Rio Tinto (LON:RIO) Ltd RIO.AX rising 0.2 percent. IRONORE/ MET/L

Across the Tasman Sea, the benchmark New Zealand S&P/NZX 50 index .NZ50 rose 0.2 percent or 12.31 points to 8,323.73.

Spark New Zealand Ltd SPK.NZ rose 1.3 percent, accounting for most of the profits, while Meridian Energy MEL.NZ climbed 1.1 percent.

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