Australian stocks rise on boost from Fortescue, bank losses cap gains

Band Arundhati Dutta

August 30 (Reuters)Australian stocks edged higher on Monday, led by Fortescue Metals after the miner reported a record annual profit, although losses in heavy bank stocks capped gains.

The S & P / ASX 200 Index .AXJO rose 0.2% to close at 7,504.5. The benchmark index ended flat on Friday.

Fortescue Metals Group Shares FMG.AX were among the benchmark’s biggest winners, finishing nearly 7% higher, after the mining heavyweight announced its highest annual earnings and dividend on record.

The larger mining sub-index .AXMM closed more than 3% higher, posting its biggest intraday jump in nearly four months, fueled by higher iron ore prices. BHP Group BHP.AX and Rio Tinto RIO.AX increased by 2.8% and 3.7% respectively.

The local gold sub-index AXGD climbed 2.4% after bullion prices hit a nearly four-week high, while a rise in oil prices led the energy index .AXEJ upper. GOL /

Resource sectors were up on a global commodity rebound after US Federal Reserve Chairman Jerome Powell said there was “no rush” to tighten monetary policy and proposed no timeline for reducing asset purchases.

On the downside, the banking sub-index .AXFJ lost 0.7%. The “Big Four” lost between 0.4% and 1.2%.

“Banks are down due to growing fears of a double dip recession with delta waves as well as global investors selling due to currency risk,” said Mathan Somasundaram, managing director of DeepData Analytics.

“Investors start to worry about market risk in September as rising inflation and delta waves affect weakening global growth. Uncertainty will increase until the US Fed’s meeting of September, “he added.

In New Zealand, benchmark S & P / NZX 50 .NZ50 rose 0.9% to end the session at 13,180.58. Sky television network SKT.NZ was the main winner after the media service provider and WarnerMedia extended their partnership.

(Reporting by Arundhati Dutta in Bangalore; Editing by Rashmi Aich)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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