Australian equities gain on tech boost, set for marginal weekly gain

Australian shares were higher on Friday, supported by financials and technology stocks as the market shrugged off concerns of a rate hike, which is expected as soon as next month. The S&P/ASX 200 index was up 0. 3% at 9, 068. 90 points as of 0058 GMT. The benchmark fell 1% on Thursday. Concerns that interest rates could stay higher for longer, fuelled by hotter-than-expected inflation data and growing expectations of a hike as soon as the next central bank meeting, trimmed the index’s earlier gains, leaving it on track for a modest 0. 1% weekly rise. Markets are now pricing in more than a 50% chance of a September rate hike by the Reserve Bank of Australia, LSEG data showed, compared with 16% before Wednesday’s inflation release. Rate-sensitive financials were up 0. 6%, while real estate stocks fell 0. 5%. The “big four” banks gained between 0. 5% and 0. 8%. Technology stocks rose as much as 5. 2%, marking their best day in a month, mirroring gains in US counterparts as Nvidia’s bumper revenue forecast reaffirmed the strength of the AI boom. Healthcare stocks climbed as much as 1%. The energy sub-index also advanced around 1%, buoyed by robust crude oil prices. Santos and Woodside Energy each added over 1%. Bucking the broader trend, staples fell 0. 8%, with Wesfarmers losing 0. 3%, extending its decline for a second straight session following a weak consumer spending warning. Among individual stocks, Virgin Australia shares were choppy in early trade after the carrier posted better-than-expected full-year earnings and said it expects to trim domestic capacity by 3% in the first half to support revenue growth. New Zealand’s benchmark S&P/NZX 50 index climbed 0. 2% to 13, 916. 69. The country’s flagship carrier Air New Zealand surged as much as 3. 9%, its best day since August 3, after reporting a narrower-than-expected annual loss.

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