SYDNEY, AAP – Technology shares jumped on the Australian market after investors seemed to think the latest US inflation data showed surging prices will not continue.
Technology shares gained 1.9 per cent and some of the biggest technology players had huge increases.
Artificial intelligence provider Appen surged 5.94 per cent to $13.90.
Financial software vendor Bravura Solutions climbed 4.93 per cent to $3.83.
Technology stocks were the biggest beneficiaries on US markets following the May consumer price index (CPI) data.
The figures showed inflation higher than expectations. However the price surge mostly came from items such as commodities and airfares.
Experts said this reaffirmed the US Federal Reserve view that rising inflation was likely to be temporary.
Technology shares can be hit hard by rising inflation and rates fears as technology companies often rely on lots of borrowing.
The ASX was also helped by materials shares. They rose by more than one per cent after iron ore prices stayed higher than $US200 per tonne.
The benchmark S&P/ASX200 index was higher by 12.7 points, or 0.17 per cent, to 7315.2 at 1200 AEST.
The index has come within about 15 points of its record high.
The All Ordinaries was up by 20.5 points, or 0.27 per cent, to 7579.3.
A drop in financial shares of 0.62 per cent limited the indices’ gains.
Meanwhile Victoria has reported no local coronavirus infections after a two-week lockdown ended for people in Melbourne.
Melburnians are limited to travelling 25km from home for one week.
Premier Investments has raised its full-year retail earnings forecast by about 90 per cent after booming sales this year.
Solomon Lew’s company, which owns Just Jeans, Peter Alexander, Smiggle and more, has benefited from Australian and New Zealand stores trading for most of this year compared to the coronavirus lockdowns of early 2020.
Shares were up 0.51 per cent to $27.47.
AMP Capital’s new boss is former State Street Global Advisors executive Shawn Johnson.
Mr Johnson will oversee the proposed demerger of AMP Capital’s private markets business, which should be completed later this year.
Meanwhile AMP said incoming chief executive Alexis George, who will replace Francesco De Ferrari, will start on August 2.
AMP shares were higher by 0.2 per cent to $1.20.
Adelaide casino operator SkyCity forecast a full-year net profit after tax of between $NZ84 million and $NZ88 million.
The company had a net loss of $NZ66.3 million last financial year due to the coronavirus.
Shares were even at $3.31.
The miners were having a good day.
BHP was up 0.63 per cent to $48.60. Fortescue jumped by 2.19 per cent to $23.33. Rio Tinto climbed 0.56 per cent to $125.62.
In banking, the big four were all lower. ANZ fared worst and lost 1.48 per cent to $28.26.
Bank of Queensland shed 1.62 per cent to $8.76.
The Australian dollar was buying 77.52 US cents at 1200 AEST, higher from 77.40 US cents at Thursday’s close.