[BENGALURU] Australian shares closed higher amid choppy trade on Monday (Apr 11), as gains in banks on the prospect of improving margins outweighed weakness in heavyweight mining stocks.
The S&P/ASX 200 swung between gains and losses through the session, and closed up 0.1 per cent at 7,485.2.
Investors' caution persisted as they weighed likely imminent rate hikes by global central banks amid inflationary pressures and the heightened Russia-Ukraine conflict.
The mining index shed 0.4 per cent, with global miner Rio Tinto and BHP sliding 1.6 per cent and 0.6 per cent, respectively.
The sectoral sub-index tracked base metals' prices that declined after the US dollar strengthened and Covid-19-led lockdowns in China raised concerns around demand.
"While commodity prices have rallied significantly due to the Russia-Ukraine conflict this year, the market dynamics seem to be shifting each passing day," Kalkine Group chief executive Kunal Sawhney said.
"The recent slump in iron ore prices due to Covid-19-related measures in China confirms the same."
Energy stocks slipped about 0.2 per cent as oil prices fell upon release of emergency reserve inventories in the face surging fuel prices due to the Russia-Ukraine conflict.
Sector major Woodside Petroleum dropped about 1.3 per cent.
Financial stocks, however, added 0.8 per cent, as banks benefited from the prospects of rate hikes by the Reserve Bank of Australia and more policy tightening by the US Federal Reserve.
Citi forecast domestic banks' margins would likely return to pre-pandemic levels due to the hikes in Australia. The "Big Four" lenders added 0.8 to 1.4 per cent.
Gold stocks gained as much as 2.5 per cent to hit a 1-month high as safe-haven demand rose following the developments around the Ukraine crisis.
Nickel miner Western Areas rose as much as 5.8 per cent, hitting a near 3-year high, after agreeing to a revised takeover offer from nickel-lithium miner IGO. Shares of IGO added 5.8 per cent.
New Zealand's benchmark S&P/NZX 50 index dropped 1.1 per cent to end at 11,932. REUTERS

Sumber : businesstimes.com.sg