Updates to close
Banks post best day in 2 weeks
Miners fall 0.5%, dragged by BHP’s ex‑dividend drop
NZ50 gains 0.6% to recover from Wednesday's losses
By Kumar Tanishk
March 5 (Reuters) - Australian shares eked out modest gains on Thursday as investors picked up beaten-down bank, energy, and tech stocks, following a two‑day rout triggered by an escalating war in the Middle East.
The S&P/ASX 200 .AXJO climbed 0.4% to 8,940.30 points, after sliding 3.2% over the previous two sessions.
Global equities rallied following a significant selloff in the prior sessions, tracking gains from U.S. equities overnight. MKTS/GLOB
In Australia, financials .AXFJ led the advance on Thursday, rising 0.8% for its strongest session since February 19. Three among the "Big Four" banks rose between 0.4% and 0.6%.
Kai Chen, a director at investment advisory firm MPC Markets, attributed it to dip-buying.
Though Australian shares tumbled earlier in the week, the losses were not as pronounced due to a larger index composition towards resources and energy stocks, said Chen.
The ASX's "energy and materials tilt meant the Middle East disruption was actually a partial positive for a chunk of the index, cushioning the downside in a way that Tokyo and Seoul couldn't replicate," Chen said.
Energy firms .AXEJ climbed 0.8% on the back of higher oil prices. Oil major Woodside’s WDS.AX fell 1% on ex‑dividend trade, while smaller rival Santos STO.AX added 1%. O/R
Tech .AXIJ and healthcare .AXHJ stocks gained 4.6% and 1.9%, respectively.
Capping some gains, the broader mining sub-index .AXMM slipped 0.5%, largely dragged by BHP's BHP.AX 1% decline as it traded ex-dividend.
However, rivals Rio Tinto RIO.AX and Fortescue FMG.AX gained 1.2% and 2.1%, respectively, supported by a jump in iron ore prices after top consumer China unveiled promising economic measures. IRONORE/
Gold stocks .AXGD fell 1.5% to log their third straight session of losses.
New Zealand's benchmark S&P/NZX 50 index .NZ50 nearly recouped Wednesday's losses, rising 0.6% to 13,617.89.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Harikrishnan Nair)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))