Table of Contents


Tech leads gains with a 2.4% jump


Gold stocks sole underperformer, down 0.6%


Australia employment data due on Thursday

(Updates to close)

By Savyata Mishra

March 15 (Reuters) – Australian shares ended a three-day rout to close higher on Wednesday, led by a recovery in tech and banking stocks, as jitters from the collapse of U.S.-based Silicon Valley Bank (SVB) abated.

The S&P/ASX 200 index rose 0.86% to 7,068.90 at the close of trade, rebounding after a more-than-4% drop over the last three sessions.

Globally, Asian equities rose sharply tracking a relief rally on Wall Street, as the closely watched U.S. inflation data came in line with expectations and raised hopes of a smaller interest rate hike by the Federal Reserve at its meeting next week. {MKTS/GLOB]

Fears of possible contagion from SVB’s demise were also allayed on Tuesday as U.S. President Joe Biden and other global policymakers vowed the crisis would be contained.

Back in Sydney, analysts expect markets to remain volatile.

“Given the magnitude of market moves earlier in the week and the ramifications of the failed banks, it will take time for this to be fully digested by markets,” said Kerry Craig, a global market strategist with JPMorgan.

“The market will now be focussed on the outlook for interest rates locally and globally,” he added.

“I remain cautious until we have better visibility on the interest rate environment and any contagion from SVB,” Damian Rooney, an institutional dealer with Argonaut Securities said.

Australia’s tech sub-index took cues from its U.S. peers, leading the rebound on the benchmark with a 2.4% jump.

Healthcare stocks advanced 1.6%, supported by a stronger greenback overnight. Biotech giant CSL Ltd finished 1.6% higher.

Financials climbed 0.9% after a three-day losing run, with the “Big Four” banks rising between 1% and 0.6%, excluding Commonwealth Bank of Australia that lost 0.3%.

Miners firmed 0.9%. The country’s mining triumvirate BHP Group, Rio Tinto and Fortescue Metals gained more than 1% each.

Gold stocks slipped after a three-day rally to end 0.6% lower on easing bullion prices.

New Zealand’s benchmark S&P/NZX 50 index closed 0.2% higher at 11,617.27. Vista Group was the top performer with a 3.7% rise. (Reporting by Savyata Mishra in Bengaluru; Editing by Janane Venkatraman)

Our Standards: The Thomson Reuters Trust Principles.