July 24, 2018 / 2:42 AM / 3 months ago

Australian shares regain momentum, led by financials; NZ flat

* Aussie stocks attractive amid talk of central bank tightening

* Financials lead gains, tracking Wall Street’s gains

* BHP leads the gains, recovers from Monday’s losses

By Nikhil Nainan

July 24 (Reuters) - Australian shares climbed on Tuesday, with financial shares tracking their Wall Street counterparts higher and gains in other bourses in the region supporting investor sentiment.

The S&P/ASX 200 index rose 0.6 percent, or 36.1 points to 6,263.7 by 0200 GMT. The benchmark slid 0.9 percent on Monday.

“It is a bit more accommodative in Australia than global markets where most of the central banks are looking to tighten,” said Mathan Somasundaram, a Blue Ocean Equities market portfolio strategist, referring to the Australia’s monetary policy outlook, which is seen unlikely to shift any time soon.

Speculation that the Bank of Japan is debating measures to scale back its massive monetary stimulus, has roiled bond markets and lifted long-term borrowing costs globally. That supported Wall Street financial shares on Monday.

Ten-year U.S. Treasury yields jumped to their highest in five weeks around 2.96 percent, not far from the psychologically important 3 percent mark.

Financials, which account for the Australian index’s top constituents, picked up, with the sector index up 0.4 percent.

“The cheapest sector and the biggest sector is the financials so we are seeing buying into that,” said Somasundaram.

Macquarie Group gained 1 percent, while Australia and New Zealand Banking rose 0.5 percent.

The Aussie metals and mining index climbed over a percent, with BHP and Rio Tinto the biggest boosts.

BHP rose as much as 1.5 percent, recouping almost all of its losses from the previous session.

Investors brushed off news on Monday that the global miner had been served with a class action lawsuit over the 2015 Samarco dam failure in Brazil.

Elsewhere, the management of BHP’s Escondida copper mine in Chile said it would deliver its final labour contract to the mine’s labour union, hoping to bring to an end tense contract negotiations.

An overnight bounce in aluminium prices helped aluminium related firm’s, like Alumina, which climbed as much as 3 percent, after a U.S. official raised the prospect of lifting sanctions on Russia’s Rusal.

Three-month aluminium on the London Metal Exchange was lower in early Asian trade.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index was largely unmoved at 8,870.89.

Gains in Meridian Energy and Ryman Healthcare capped losses by Fisher & Paykel Healthcare Corporation Ltd

For more individual stocks activity click on (Reporting by Nikhil Kurian Nainan in Bengaluru, additional reporting by Aditya Soni; Editing by Sam Holmes)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below