Jan 6 (Reuters) - Australian shares inched higher on Friday, boosted by miners, although gains were capped after upbeat U.S. economic data and Federal Reserve's hawkish monetary policy stance stoked new fears of prolonged hiked interest rates.
The S&P/ASX 200 index rose 0.2% to 7,076.00 by 2335 GMT. The benchmark settled 0.1% higher on Thursday.
An employment report showed a higher-than-expected rise in private employment in December in the United States, indicating a strong labour market which market participants see as a reason for the Fed to keep interest rates high.
Export reliant mining stocks emerged as the top gainer on the benchmark, soaring over 1.5% with sector giants BHP Group, Rio Tinto and Fortescue Metals Group climbing between 2.4% and 1%.
Top steel producer China on Thursday announced reopening of its border with Hong Kong, bringing the resumption of quarantine-free travel between the financial hub and the mainland, as China looks to unwind of stringent COVID rules.
Additionally, energy stocks edged up after oil prices rose following two days of losses on U.S. data showing fuel inventories drawdown, while prolonging economic concerns capped gains.
Sector majors Woodside Energy Group and Santos Ltd added 0.2% and 0.7%, respectively.
Domestic technology stocks tracked subdued sentiment overnight on Wall Street, slumping about 1%, with ASX-listed shares of Block Inc, Xero Ltd and Computershare Ltd sliding between 3.3% and 0.6%.
Banking stocks shed 0.1%, with lender Commonwealth Bank of Australia falling 0.2%.
Gas producer Strike Energy said all-scrip bid of 37.5 Australian cents per share for Perth-based Warrego Energy , represents a 4.2% premium to Hancock's sweetened 36 cents-per-share offer announced on Thursday. Shares for both Strike Energy and Warrego rose up to 1.3% each in early trade.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.01% to 11,653.30. (Reporting by Jaskiran Singh in Bengaluru; Editing by Rashmi Aich)
