Mining and energy stocks lift Australian shares on commodity boost

Australian shares rose slightly on Wednesday, buoyed by strength in commodity-linked mining and energy stocks on the back of upbeat pricing, while oil prices lingering near the $100-per-barrel mark weighed on investor sentiment. The S&P/ASX 200 index rose 0. 2% to hit 8, 942. 60 by 0016 GMT. The benchmark fell 1% on Tuesday. The resources sub-index, accounting for more than a quarter of the Australian bourse per market capitalisation, rose 0. 9%. The sub-index benefited from upbeat base metal prices, particularly copper, which hit an all-time high. Sector heavyweights BHP, Rio Tinto and Fortescue rose 2. 7%, 2. 1% and 1. 5%, respectively. BHP and Rio posted their steepest daily gains since late August. Energy stocks advanced 1. 5% in their third straight day of gains, as crude prices jumped for the fourth straight session following fresh Iranian attacks on US military assets in the Middle East. Index leaders Woodside Energy and Santos surged 2. 5% and 1. 6%, respectively. Santos, Australia’s no. 2 independent oil and gas producer, hit its highest point in nearly three weeks. Healthcare stocks bucked the trend to slip as much as 1. 8% to a three-week low. Biotech major CSL lost as much as 2. 7% in its largest one-day decline since late August on trading ex-dividend. Meanwhile, the country’s central bank will debate the case for a rate hike at its policy meeting this month, deputy governor Andrew Hauser said late on Tuesday, with inflation remaining too high and risks still skewed to the upside. The Reserve Bank of Australia has raised its key cash rate three times so far this year as surging oil prices, driven by the Gulf conflict, pushed sticky inflation higher through fuel bills. Bets show a 74% possibility of a quarter-point rate hike at the central bank’s next meeting on September 29. Further south, New Zealand’s benchmark S&P/NZX 50 index inched up 0. 1% at 13, 809. 08.

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