Australian shares close marginally higher; tech shines, commodity stocks dip

Reuters
11/27
Australian shares close marginally higher; tech shines, commodity stocks dip

Updates to close

AXJO rises for a fourth straight session

Tech gains 2%, the energy sub-index falls 1.3%

NZ50 ends 1% lower

By Keshav SinghChundawat

Nov 27 (Reuters) - Australian equities ended marginally higher on Thursday, supported by steady risk sentiment after a period of defensive positioning, with gains in technology and healthcare stocks outweighing losses in mining and energy.

The benchmark index S&P/ASX 200 .AXJO rose 0.1% to 8,617.30 in its fourth straight session of gains, its longest rally since mid-May.

"Markets are essentially 'resetting' after a period of risk-off positioning. Some overheated or overleveraged pockets have been flushed out, which is a healthy consolidation phase of a bull market," said Marc Jocum, a senior product and investment strategist at Global X ETFs.

Meanwhile, data showed that Australian business investment jumped by the most in more than four years in the third quarter. It came as welcome news a day after a hot inflation reading sealed the case that the central bank's current policy easing is now over.

Tech stocks .AXIJ advanced 2%, tracking their Wall Street peers. Software firm Wisetech Global WTC.AX surged 6.9% in its best session since early April.

Healthcare stocks .AXHJ rose 0.8%, with biotech giant CSL CSL.AX gaining 1.8%.

Financials .AXFJ inched up 0.1%, after gaining up to 0.6% earlier in the session. The country's banking regulator said it would impose its first cap on high debt-to-income home loans from February to curb housing risks.

Miners .AXMM snapped a three-day rally to dip 0.2%, as iron ore futures struggled for direction. Rio Tinto RIO.AX and BHP BHP.AX slipped 1.4% and 0.2%, respectively.

Energy stocks .AXEJ slid 1.3% as oil prices retreated. Woodside Energy WDS.AX fell 1%.

Among individual stocks, QBE Insurance Group QBE.AX tumbled 3.7% after signalling a softer premium rate growth in the third quarter.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 finished 1% lower at 13,432.20. It added 0.6% on Wednesday after the central bank cut rates by 25 basis points and signalled that its easing cycle was over.

(Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Rashmi Aich)

((Keshav.SinghChundawat@thomsonreuters.com))

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