Jan 20 (Reuters) - Australian shares closed higher on
Thursday as upbeat results and firm bullion prices helped the
gold sub-index surge 7%, although the gains were capped by banks
following earnings reports from their U.S. peers.
The S&P/ASX 200 index ended 0.1% higher at 7,342.40,
snapping a two-day losing streak but still hovering near a
one-month low hit in the previous session.
Gold stocks soared 7.3% in their best session since
April 2020, as Northern Star Resources and Resolute
Mining jumped 11.4% and 5.1%, respectively, after
robust results.
Bullion prices aided gains as they steadied near a two-month
high hit in the previous session.
Financials dropped 0.8% to a near one-month low,
with top lenders Commonwealth Bank of Australia and
National Australia Bank declining 0.7% and 1.3%,
respectively.
Damian Rooney, director of equity sales at Argonaut, cited
results from big U.S. banks this week as a possible catalyst for
weakness in domestic bank shares.
Local tech stocks fell 0.6%, tracking their Wall
Street peers lower after the tech-heavy Nasdaq entered
correction territory overnight.
Altium and Computershare declined 1.6% and
1.3%, respectively.
Rooney attributed the slide in tech shares to markets
"moving more towards a tightening cycle with Fed's minutes,"
with many betting on a certain interest rate hike in March.
Australia's central bank may also start raising rates as
soon as August, analysts at Westpac said, as they expect a
pick-up in inflation and wage growth to outweigh the drag on
economic activity from rising coronavirus cases.
Meanwhile, data showed on Thursday that the country's
jobless rate fell to its lowest since 2008.
In New Zealand, the benchmark S&P/NZX 50 index fell
0.9% to 12,497.10.
(Reporting by Upasana Singh in Bengaluru; editing by
Uttaresh.V)