Australia shares cross 8,500 as oil lifts energy stocks; tech, healthcare shine

Reuters
06-04
Australia shares cross 8,500 as oil lifts energy stocks; tech, healthcare shine

June 4 (Reuters) - Australian shares charged past the key psychological 8,500 mark on Wednesday, led by energy stocks on rising oil prices, while a subdued local dollar and Wall Street gains overnight boosted healthcare and technology shares.

The S&P/ASX 200 index .AXJO rose 0.5% to 8,508.6, as of 0029 GMT.

Investors closely awaited economic growth data due later in the day, with markets expecting just 0.4% growth in the first quarter, slowing from 0.6% gain previously.

Energy stocks .AXEJ led gains on the benchmark index, up 2.2%, and headed for their biggest single-day gain since late May.

Oil prices surged to a two-week high on Tuesday as prolonged geopolitical tensions between the U.S. and Iran, and Ukraine and Russia looked set to keep sanctions on the OPEC+ members.

In Sydney, energy giants Woodside WDS.AX and Santos STO.AX gained 2.6% and 1.2%, respectively. Boss Energy BOE.AX jumped 6.3% and was one of the top gainers on the benchmark.

Mining stocks .AXMM tracked the broader market despite a drop in iron-ore prices. BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX added between 0.3% and 1.1%.

Financials .AXFJ rose 0.4% with the country's "Big Four" banks lifting between 0.1% and 0.7%. Conglomerate Macquarie MQG.AX gained 1%.

The healthcare sub-index .AXHJ gained as much as 0.6% after the U.S. dollar rebounded from a six-week low, impacting the local currency.

Domestic healthcare companies depend on exports to the U.S. and are positively impacted by a depreciating Australian dollar.

Sector heavyweights CSL CSL.AX and Cochlear COH.AX gained 0.2% and 0.1%, respectively.

Technology shares .AXIJ rose 0.3%, tracking gains in their U.S. peers. WiseTech Global WTC.AX and Megaport MP1.AX were among the gainers on the sub-index.

Gold stocks .AXGD, however, fell 1.1% as the bullion slipped.

Bain-Capital owned airline Virgin Australia IPO-VIR.AX was set to re-list on the exchange later in June.

Meanwhile, New Zealand's benchmark index .NZ50 rose 0.85% to 12,429.5.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Rashmi Aich)

((Rishav.Chatterjee@thomsonreuters.com;))

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