September 22, 2017 / 6:38 AM / a month ago

Australia shares end higher; NZ reverses losses before election

(ta(Updates to close)

By Chris Thomas

Sept 22 (Reuters) - Australian shares snapped three sessions of losses to rise 0.5 percent on Friday, thanks to strength in financial stocks, while New Zealand shares reversed losses to finish the session 0.3 percent higher ahead of Saturday’s general elections.

The S&P/ASX 200 index rose 0.5 percent, or 26.68 points, to 5,682.1 at the close of trade, but finished the week 0.2 percent lower. The benchmark fell 0.9 percent on Thursday.

Banks and insurers lifted the index, with National Australia Bank Ltd posting its highest close in over a month, and Suncorp Group Ltd climbing 2.8 percent to end at its highest since Sept 1.

“The Australian market has underperformed the region and the globe over the course of this week ... so there is an element of catch-up,” said Michael McCarthy, chief market strategist at CMC Markets.

New Zealand’s benchmark S&P/NZX 50 index reversed early losses to rise 19.37 points, finishing at 7,814.78. The index ended the week 0.7 percent higher.

Fisher & Paykel Healthcare Corporation Ltd led the comeback, rising 1.3 percent to close at its highest in one week.

New Zealand heads into elections on Saturday, with a final opinion poll showing the ruling National Party’s lead over the opposition Labour Party slipping to 8.5 points, meaning minor parties could well decide who forms the next government.

“A change of government would be of concern to markets ... the nine-year government that is in place has proved to be a steady hand through a number of major issues for New Zealand, including the global financial crisis and the earthquakes that have hit the country,” said CMC’s McCarthy.

“So I see the markets falling if there is a change of government.”

Polls show that the election is too close to call, with votes of overseas New Zealanders likely to decide the outcome. Overseas voting results will be published on Oct. 7. (Reporting by Chris Thomas in Bengaluru; Additional reporting by Aditya Soni; Editing by Kim Coghill)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below