Updates to close
ASX 200 rises 1.1%
Miners up 2%, energy sub-index slid 2.9%
NZX 50 ends flat
Air NZ suspends annual guidance, ends 1.1% lower
By Keshav SinghChundawat
March 10 (Reuters) - Australian shares recouped some losses from the previous session on Tuesday, after U.S. President Donald Trump said the war with Iran could end soon, sending oil prices lower and triggering a rush back into battered stocks.
The benchmark S&P/ASX 200 index .AXJO rose 1.1% to finish at 8,692.60 points, after falling about 3% on Monday, which marked its worst day in 11 months.
Trump said the conflict with Iran could end well before the initially planned four-week period, easing worries about prolonged disruptions to global oil supplies, resulting in oil prices falling by more than 4%. O/R
Australia's energy sub-index .AXEJ declined 2.9% in its worst session since mid-September, a day after notching its all-time high.
Oil and gas explorer Karoon Energy KAR.AX tanked 6.8%, its steepest drop since April 9. Sector majors Santos STO.AX and Woodside Energy WDS.AX also slid 3.5% and 3.8%, respectively.
"When oil rallies on geopolitical fear rather than actual supply disruption, the sector quickly becomes the most crowded trade in the room and the fastest to reverse once the fear premium begins to fade," said Hebe Chen, senior market analyst at Vantage Markets.
The rotation out of energy stocks is more a tactical move than a structural exit. The sector may stay broadly supported though as long as the Strait of Hormuz remains a flashpoint, Chen added.
The mining sub-index .AXMM snapped a five-session losing streak to advance 2%, with BHP Group BHP.AX and Rio Tinto RIO.AX climbing 2.3% and 0.6%, respectively.
Financials .AXFJ rose 1.3% in their best session in nearly three weeks. All the big four banks added between 1.4% and 1.9%.
Technology .AXIJ, healthcare .AXHJ, and gold stocks .AXGD also advanced between 1.8% and 2.1%.
Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index .NZ50 ended flat at 13,094.37 points.
Air New Zealand AIR.NZ, the country's flag carrier, ended 1.1% lower after suspending annual earnings guidance and raising fares due to the volatility stemming from the conflict in the Middle East.
(Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Ronojoy Mazumdar)
((Keshav.SinghChundawat@thomsonreuters.com))