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Aus shares climb on strong local earnings; NZ set for 5th day of gains

Published 27/02/2018, 12:52 pm
© Reuters.  Aus shares climb on strong local earnings; NZ set for 5th day of gains
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By Susan Mathew

Feb 27 (Reuters) - Australian shares extended gains into a fifth session on Tuesday, buoyed by mining and energy companies such as BHP BHP.AX in the wake of rising prices for some commodities and a string of healthy earnings reports in the sector.

The benchmark S&P/ASX 200 index .AXJO had climbed 0.6 percent, or 34 points, to 6,076.2 by 0103 GMT, after finishing the previous day up 0.7 percent.

Australian markets were also boosted after U.S. stocks on Monday hit their highest in over three weeks, with a decline in Treasury yields calming investor concerns about rising interest rates. .N

"We're getting into the back-end of the reporting season and its been pretty decent results on the stocks (that reported) today. You've got the U.S. positive sentiment coming through as well," said Mathan Somasundaram, market portfolio strategist at Blue Ocean Equities.

Mining giant BHP rose 1.4 percent, underpinned by strengthening iron ore and copper prices, while fuel supplier Caltex Australia CTX.AX climbed as much as 5.8 percent to its highest in over two years after it reported a rise in first-half profit. IRONORE/ MET/L

"(Caltex is) a unique retailer with energy exposure, and of course reflation with oil prices going up is going to increase their margins for the energy side of things," said Somasundaram. O/R

Mineral sands company Iluka Resources ILU.AX gained up to 6.4 percent, hitting an over four-year top, after reporting positive full-year results. Steel BSL.AX extended gains, up 3.7 percent, after posting a sharp rise in half-year profit on Monday, helping push up the Australian mining index .AXMM by 1 percent. the 'Big 4' banks climbed between 0.8 percent and 1.2 percent, and horticulture company Costa Group CGC.AX was the best performer up as much as 13.8 percent to an all-time high after posting an over four-fold rise in first half net profit. Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5 percent, or 38.98 points to 8,379.51, on track to finish higher for a fifth straight session.

Investors seemed to shrug off data showing the country's annual trade deficit widened to NZ$3.22 billion ($2.35 billion) in January from a deficit of NZ$2.84 billion a month before. generator Trustpower Ltd TPW.NZ was the best performer on the index, up 3.7 percent, while a2 Milk's ATM.NZ 1.8 percent rise contributed the most to the index's gains.

For more individual stocks activity click on STXBZ

($1 = 1.3716 New Zealand dollars) ($1 = 1.2728 Australian dollars)

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