Australia shares rise as miners gain on commodities rally
07:14, 25 August 2021
Australian shares rose for a third straight day on Wednesday as a rally in commodities prices pushed shares in the country’s materials firms higher.
Benchmark Standard & Poor's (S&P)/Australian Securities Exchange (ASX) 200 index climbed 0.4% to 7,531.90 points on Wednesday. The index had closed 0.2% stronger a day earlier.
Most industrial metals rose overnight with iron ore prices surging as much 11% to lead the industrial metals rally, followed by gains in copper and zinc.
Aussie mining index rebounds
S&P/ASX 300 Metals & Mining advanced 1.6% on Wednesday taking its gains for the week up to 3.5%. The subindex posted its worst weekly loss in 17 months last week by slumping over 11%.
ASX-listed shares of iron ore miners BHP Group and Fortescue Metals were among the most active stocks on the mining index, rising 1.4% and 2.6%, respectively, while Lynas Rare Earths was the top gainer on the subindex, jumping over 5.5%.
S&P/ASX All Technology index rose 1.7% as logistics software provider WiseTech Global gained as much as 58% to see its best day ever after the company reported strong results and outlook.
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Chinese education stocks rise
Hong Kong’s Hang Seng index fell 0.2% on Wednesday, after two days of strong gains, as sportswear maker ANTA Sports Products and hot pot restaurant chain Haidilao International emerged as top percentage losers.
Education technology stocks rose on Wednesday as investors looked for bargains in a beaten down sector that felt the full force of regulatory action in late July when after-school tutoring firms were forced to go non-profit and barred from going public.
Hong Kong-listed shares of New Oriental Education & Technology Group surged over 15% and Shenzhen-listed shares of Xueda Xiamen Education Technology rose 5% on Wednesday.
Shanghai up, Shenzhen flat
Shanghai Stock Exchange Composite Index rose 0.6% after China’s central bank offered to release CNY50bn ($7.7bn) into the banking system via seven-day reverse repos.
Benchmark index of Shenzhen trimmed early losses to trade flat by Wednesday afternoon, while China’s blue-chip CSI 300 index inched 0.1% higher.
Neighbour South Korea’s benchmark KOSPI was up 0.3% ahead of two key events, US Federal Reserve’s Jackson Hole Conference and Bank of Korea's policy rate meeting, scheduled for Thursday.
Japan's Nikkei 225 subdued
Across the Sea of Japan, market in the world’s third-largest economy was flat on Wednesday, as losses in retail and utilities sector offset gains in materials and automobile sector to keep Japan’s Nikkei 225 index subdued.
Economists at DBS cut Japan’s 2021 economic growth forecast citing longer-than-expected impact from the pandemic and possible peaking of exports cycle.
“The Bank of Japan is expected to keep the policy rates unchanged at the remaining three meetings this year,” DBS added.
Philippines leads APAC gains
In Southeast Asia, Philippine shares rose over 2% to hit an over two-month high as it led gains in Asia-Pacific.
Vietnam’s HOSE index hovered below the 1,300 points level on Wednesday as the country struggles to contain resurgent COVID-19 outbreaks.
“An escalation in COVID-19 cases and deaths over July-August will undermine Vietnam’s previously strong recovery from the pandemic shock and may temporarily set back positive rating momentum,” Fitch Ratings said in a note.
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