SYDNEY, AAP – After surging early, Australia’s share market closed with modest gains as changing investor sentiment overseas took a toll on local equities.
The S&P/ASX200 benchmark index closed higher 28.8 points, or 0.43 per cent, to 6739.6 on Monday.
The All Ordinaries closed higher by 28.6 points, or 0.41 per cent, at 6971.6.
Materials was the top sector, up 1.65 per cent.
Consumer staples, energy and financials closed half a per cent or more higher.
The ASX200 was 1.7 per cent higher at 1200 AEDT and earlier reached a daily high of 6835.6 after US markets closed higher on Friday.
However IG Markets analyst Kyle Rodda noticed a change in US futures trading during the Aussie session.
Nasdaq futures, in particular, shifted lower, and Mr Rodda said this may have been due to a rise in US bond yields.
On the ASX, that coincided with big falls during trade for information technology and health. The sectors closed lower by 1.14 per cent and 0.84 per cent.
“The price action … speaks again to the uncertainty in the market about what higher global bond yields mean for investment markets,” Mr Rodda said.
“On the one hand, as central banks keep reassuring, a steeper yield curve is a positive signal for the growth outlook.
“But on the other, as any market participant will tell you, there remains fear that higher risk-free rates may push lofty stock valuations too far.”
There will be more attention this week on US President Joe Biden’s $US1.9 ($A2.5) trillion coronavirus aid bill which is headed back to the House for approval after passing the Senate.
Oil prices were at their highest in more than a year after Yemen’s Houthi forces fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, raising concerns about production.
Brent Crude was trading at $US69.36 per barrel.
On the ASX, that meant big gains for some energy companies.
Beach rose 4.12 per cent to $1.77 while Oil Search rose 3.39 per cent to $4.57.
Australians’ participation on Monday was likely limited by residents of four states and territories enjoying public holidays.
There were big gains for miners after the iron ore price rose 1.71 per cent to $US178 per tonne.
BHP climbed 2.38 per cent to $49.38, Fortescue rose 0.5 per cent to $22.21 and Rio Tinto gained 2.91 per cent to $121.11.
Afterpay was caught in the mid-session tech sector decline. The buy now, pay later provider lost 3.64 per cent to $111.20.
Elsewhere, testing services provider ALS said it bought testing provider Investiga, which operates in Brazil and the USA.
Investiga, which works in cosmetic and personal care, had revenue of about $20 million last financial year.
Shares were up 0.63 per cent to $9.55.
Reece Pharmaceuticals will soon begin trading on Germany’s Frankfurt Stock Exchange with an expectation of more institutional and retail shareholders across Europe.
Shares were higher by 4.08 per cent to $1.02.
Big banks were mixed. Macquarie was up 2.95 per cent to $148.45. ANZ lost 0.42 per cent to $28.72, the Commonwealth rose 1.01 per cent to $87.32, NAB climbed 0.15 per cent to $26.43 and Westpac shed 0.52 per cent to $24.74.
On Tuesday, the weekly ANZ-Roy Morgan consumer confidence index, a pointer to future household spending, will be published.
Results of the monthly National Australia Bank business survey, a guide to hiring and investment, will also be shown.
The Australian dollar was buying 77.11 US cents at 1706 AEDT, higher from 77.06 US cents at Friday’s close.
ON THE ASX
* The S&P/ASX200 benchmark index closed higher 28.8 points, or 0.43 per cent, to 6739.6 on Monday.
* The All Ordinaries closed higher 28.6 points, or 0.41 per cent, at 6971.6.
* At 1711 AEDT, the SPI200 futures index was even and trading at 6734 points.
One Australian dollar buys:
* 77.11 US cents, from 77.06 cents on Friday
* 83.57 Japanese yen, from 83.53 yen
* 64.73 Euro cents, from 64.59 cents
* 55.73 British pence, from 55.61 pence
* 107.59 NZ cents, from 107.63 cents.