* RBNZ hikes official cash rate by 50 basis points
* Kiwi gains after RBNZ rate decision
* Mining, financial stocks lift ASX
May 25 (Reuters) - Australian shares rose on Wednesday, led
by gains in heavyweight mining and financial stocks, while New
Zealand equities fell after the country's central bank raised
interest rates and sharply lifted its projection for future
The S&P/ASX 200 index closed 0.4% higher at
7,155.20. The benchmark fell 0.3% on Tuesday.
The Reserve Bank of New Zealand raised interest rates by 50
basis points to 2.0%, its fifth straight rate hike, as it seeks
to check inflation and signalled the cash rate would peak at a
higher level than previously forecast.
The New Zealand dollar climbed, while the benchmark
S&P/NZX 50 index ended 0.7% lower at 11,173.37 after
rising as much as 0.6% earlier.
"We expect these reactions to extend further over the next
few days, given the outcome is a significant hawkish surprise,"
Imre Speizer, head of NZ strategy at Westpac, said in a note.
Medical device maker Fisher & Paykel Healthcare
fell 3.9%, after its full-year profit dropped.
Building material provider Fletcher Building and
real estate investment company Kiwi Property fell 2.7%
and 1.9%, respectively.
In Australia, heavyweight mining stocks and
financial stocks led gains, rising 0.6% and 0.8%,
Gold stocks rose 2% on strong bullion prices.
Technology stocks dropped 3%, as S&P 500 and
tech-focused Nasdaq ended lower overnight on concerns about
rising inflation and a sell-off in social media stocks sparked
by Snapchat-owner Snap Inc's profit warning.
Software company Megaport fell 5.4%, while
Australia-listed shares of Block Inc slipped 5.5%.
"We saw a reasonable broad-based rally as the market is
slowly feeling better about itself and investors anticipate that
the Fed won't be able to do as many rate rises as they have
conveyed to the market," said Brad Smoling, managing director of
The minutes of the Federal Bank's monetary policy meeting
are expected later in the day.
(Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi