Australian stocks hit two-week high as energy stocks rally
May 25 (Reuters) – Australian stocks hit a two-week high on Tuesday as a more than 3% rise in oil prices boosted energy stocks, sentiment being helped by an overnight rally on Wall Street.
The S & P / ASX 200 Index .AXJO climbed 0.5% to 7,079.1 at 12:38 a.m. GMT, on track for its fourth straight session of gains. The benchmark index ended up 0.2% on Monday.
Heavy energy actions .AXEJ firmed 1.4% as crude prices surged after traders hoped an increase in demand from COVID-19 vaccinations would meet any potential supply of Iranian oil. OR
Industry leaders Woodside Petroleum WPL.AX and Oil Search Ltd OSH.AX increased by 0.8% and 1.4% respectively.
The technological index .AXIJ jumped to 1.5%, following a rally on the highly technological Nasdaq .IXIC, the sub-index is heading towards its fourth day of gains.
US stocks were buoyant as lower benchmark T-bill yields helped push expensive stocks up in areas such as tech. .NOT
Investors are now eagerly awaiting inflation data expected in the United States later this week to determine the Federal Reserve’s monetary policy stance.
Among other stocks and sectors, the software company TechnologyOne Ltd TNE.AX was the biggest percentage winner on the Australian benchmark, with a jump of 7.3%, followed by intelligence software provider Nuix Ltd NXL.AX.
The health index .AXHJ rose 0.8% to its highest level in more than five months. CSL Ltd Heavy Truck Index CSL.AX led gains with an increase of 1.2%.
In contrast, gold stocks .AXGD eased 0.3% even as the precious metal edged up on support from a weaker dollar and lower yields on US Treasuries. GOL /
Gold miner Resolute Mining Ltd RSG.AX slipped 4.3%, followed by Dacian Gold Ltd DCN.AX, down 3.1%.
Across the Tasman Sea, New Zealand’s benchmark S & P / NZX 50 .NZ50 fell 0.2% to 12,430.5 a day before the country’s central bank meeting.
In other markets, the Nikkei of Japan .N225 was up 0.4% to 28,470.52, and S&P 500 E-minis futures EScv1 were up 3 points, or 0.1%.
(Reporting by Riya Sharma in Bengaluru; editing by Uttaresh.V)
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