Australia: Energy stocks drive shares higher; a2 Milk drags down New Zealand

[BENGALURU] Australian shares rose on Thursday as energy stocks jumped on stronger crude oil prices and technology stocks tracked their US peers higher after three straight sessions of falls.

The S&P/ASX 200 index climbed 0.9 per cent to 6,840.1 by 0026 GMT, also tracking global equities after US Federal Reserve Chairman Jerome Powell eased inflation concerns. The index fell 0.9 per cent on Wednesday.

Overnight, Wall Street's major indexes closed higher as a sell-off in technology-related stocks eased and a rotation into cyclical shares continued after Mr Powell said the Fed plans to leave interest rates unchanged for a long time to come.

Energy stocks in Australia rose to a one-month high and dominated gains on the benchmark, as oil prices hit a 13-month peak overnight after US government data showed a drop in crude output.

Santos jumped as much as 3.5 per cent to hit a more than one-month high, while Woodside Petroleum gained 4.1 per cent.

Technology stocks rose 1.1 per cent, mirroring gains in their US peers.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Buy-now-pay-later giant Afterpay said it was exploring an additional stock listing abroad amid increased US investor interest after reporting a more than doubling in first-half sales.

Trading in Afterpay shares were however halted.

Link Administration Holdings jumped 3.2 per cent after the investment services provider said shareholders of its unit PEXA agreed to explore the possibility of taking the online property transaction firm public.

Qantas Airways rose 4.7 per cent despite posting a A$1.03 billion first-half underlying loss before tax. Jefferies analyst Anthony Moulder cited strong cash flow and liquidity as the reasons for the stock move.

Financial stocks also rose, with the "Big Four" banks trading in positive territory.

New Zealand's benchmark S&P/NZX 50 index was down 0.9 per cent to 12,173.26 by 0057 GMT.

Shares of a2 Milk fell as much as 19.9 per cent to a more than two-year low after the dairy producer forecast full-year revenue at the lower end of its guidance range, as the Covid-19 pandemic disrupted sales in its key Chinese market.

REUTERS