Australia shares edge higher from seven-month lows as bargain hunters step in
Source: Live Mint
March 13 (Reuters) – Australian shares eked out modest gains on Thursday, rebounding from a seven-month low, as investors took advantage of recent weakness to buy the dip after U.S. President Donald Trump’s tariff debacle sent markets substantially lower.
The S&P/ASX 200 index rose 0.2% to 7,803.9 points by 2332 GMT, following a 1.3% decline in the previous session that saw the benchmark close at its lowest level since August.
On Wednesday, the index fell as much as 7,733.50, marking a drop of more than 10% from its February 14 record high — just shy of confirming a technical market correction.
Investor sentiment was buoyed overnight after the release of closely watched U.S. inflation data, which reinforced expectations of interest rate cuts later this year.
However, markets continued to weigh the downside risks of an escalating global trade war, triggered by U.S. President Donald Trump’s latest tariff measures.
Financial stocks snapped a seven-day losing streak, rising 0.2%, as Australia’s “big four” banks posted modest gains. Commonwealth Bank of Australia, Westpac Banking Corp , National Australia Bank and ANZ rose between 0.1% and 0.3%.
Mining stocks were broadly flat, edging down 0.1%, as weaker iron ore prices weighed on sentiment. BHP Group slipped 1.2%, Rio Tinto lost 0.3% and Fortescue Metals Group shed 0.3%.
Gold stocks climbed 1.6% as uncertainty surrounding global trade and easing inflation bolstered demand for safe-haven assets. Northern Star Resources gained 1.4%, while Evolution Mining advanced 1.9%.
Technology stocks tracked gains on Wall Street, rising nearly 1%. Accounting software provider Xero climbed 1.2%, and logistics software firm WiseTech Global surged 1.7%.
Consumer staples added 0.5%, supported by defensive buying, while real estate stocks rose 1.5% as lower bond yields lifted appetite for interest-sensitive sectors.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to close at 12,285.28 points. (Reporting by Nikita Maria Jino in Bengaluru; Editing by Alan Barona)
