- Shares in energy providers and mining companies were doing well on the ASX as major countries relax coronavirus restrictions.
- SYDNEY, AAP – Energy and mining shares were thriving on the Australian market as the world’s economic rebound from the coronavirus gathered pace.The benchmark S&P/ASX200 index was higher by 13.8 points, or 0.19 per cent, to 7042.6 at 1200 AEST on Tuesday.The All Ordinaries was up by 12.1 points, or 0.16 per cent, to 7298.9 points.
Energy and mining shares were up 1.6 per cent.
Oil prices were higher overnight as more US states eased lockdowns and the European Union sought to attract more travellers.
European leaders want to allow foreign visitors who have been vaccinated for COVID-19.
On the ASX, Beach Energy as one of the biggest beneficiaries in this category. It rose 3.33 per cent to $1.31.
Iron ore futures climbed higher than $US190 per tonne. China is the biggest consumer of the steel-making commodity and its economic recovery shows no sign of slowing.
BHP gained 1.89 per cent to $47.92. Rio Tinto improved by 1.49 per cent to $121.89.
Meanwhile the Reserve Bank will give its cash rate decision at 1430 AEST.
Economists do not expect change to the record low rate of 0.1 per cent.
Earlier the US S&P 500 and Dow indexes closed higher amid a largely upbeat earnings season.
The Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and “economy reopening” stocks continued.
The Dow Jones Industrial Average rose 0.7 per cent. The S&P 500 gained 0.27 per cent. The Nasdaq Composite dropped 0.48 per cent.
In ASX company news, jobs directory Seek raised its profit forecast as small to medium businesses across Australia and New Zealand hire more workers than expected.
The company raised its full-year forecast for net profit from $100 million to $140 million, and earnings from $460 million to $480 million.
Shareholders will receive a special dividend of 20 cents per share from the sale of a stake in a Chinese business.
Shares were higher by 3.48 per cent to $31.80.
Furniture trader Nick Scali raised its full-year forecasts of net profit by almost 90 per cent due to strong sales.
Nick Scali said full-year net profit after tax would be between $78 million to $80 million.
Shares were down 3.64 per cent to $10.31.
Banking shares were mostly lower. Westpac dipped 1.48 per cent to $25.84 after Monday’s first-half earnings report delighted investors.
Westpac had the greatest loss of the big four banks.
The Commonwealth was the only one of these to rise and gained 0.2 per cent to $89.88.
Technology shares fared worst and lost 1.26 per cent.
Afterpay lost 1.57 per cent to $112.21.
The Australian dollar was buying 77.42 US cents at 1200 AEST, higher from 77.10 US cents at Monday’s close.