The Australian stock market is modestly higher on Wednesday, extending gains from the previous session, following the mostly positive cues overnight from Wall Street. Investors also digested some upbeat local corporate earnings results. Gains by banks and oil stocks helped offset weakness in mining stocks.
In late-morning trades, the benchmark S&P/ASX 200 Index is adding 11.20 points or 0.19 percent to 6,048.20, off a high of 6,058.20 earlier. The broader All Ordinaries Index is rising 11.50 points or 0.19 percent to 6,162.20. Australian shares rose sharply on Tuesday to snap a five-day losing streak.
In the banking space, ANZ Banking, National Australia Bank, Westpac and Commonwealth Bank are higher in a range of 0.1 percent to 0.6 percent.
Among oil stocks, Oil Search is losing 2 percent, while Santos is adding more than 1 percent and Woodside Petroleum is advancing 0.4 percent after crude oil prices rose more than 1 percent overnight.
Santos reported a 20 percent increase in full-year revenue as higher prices offset lower production and sales volume. The company also said it aims to reduce debt to $2 billion by the end of 2019.
The major miners are weak after iron ore prices fell almost 3 percent. BHP Billiton is declining 0.6 percent, Rio Tinto is down almost 1 percent and Fortescue Metals is losing more than 1 percent.
Gold miners are mixed. Newcrest Mining is lower by 0.4 percent, while Evolution Mining is rising 0.6 percent.
Kathmandu Holdings said it expects first-half profit to rise by at least 20 percent following a successful trading period. The outdoor clothing and equipment maker's shares are rising 0.5 percent.
Michael Hill International said it will exit its loss-making U.S. stores and is assessing the viability of its charm business Emma & Roe following a strategic review. The jewelry chain's shares are gaining more than 5 percent.
Wattle Health Australia reported a 58 percent surge in second-quarter sales and said it expects further increases due to new distribution agreements in Australia and China. Shares of the infant formula supplier are also advancing more than 5 percent.
In economic news, Australia will see December figures for skilled vacancies today.
In the currency market, the Australian dollar edged higher against the U.S. dollar on Wednesday. In early trades, the local unit was quoted at US$0.7995, up from US$0.7990 on Tuesday.
On Wall Street, stocks closed mostly higher on Tuesday as lawmakers managed to re-open the government following a brief shutdown. Upbeat earnings news also generated buying interest, with Dow components Johnson & Johnson, Procter & Gamble and Travelers reporting better than expected quarterly results.
While the Dow edged down 3.79 points or less than a tenth of a percent to 26,210.81, the Nasdaq climbed 52.26 points or 0.7 percent to 7,460.29 and the S&P 500 rose 6.16 points or 0.2 percent to 2,839.13.
Meanwhile, the major European markets turned in a mixed performance on Tuesday. The French CAC 40 Index edged down by 0.1 percent, while the U.K.'s FTSE 100 Index rose by 0.2 percent and the German DAX Index advanced by 0.7 percent.
Crude oil prices rose on Tuesday as OPEC officials continued to signal their determination to re-balance oil markets via supply cuts. February WTI oil climbed $0.90 or 1.4 percent to settle at $64.47 a barrel on the New York Mercantile Exchange, the highest since December 2014.
by RTT Staff Writer
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