Nov 24 (Reuters) - Australian shares ended a see-saw trading
session slightly lower on Wednesday, as strength in the U.S.
dollar and firmer Treasury yields dragged gold miners and tech
stocks, and outweighed a rally in the energy sector.
The benchmark S&P/ASX 200 index ended 0.15% lower at
7,399.4, after having added 0.8% on Tuesday.
"I think the main problem is what's happening to bond yields
and what's happening to the U.S. dollar; both of them are
climbing", said Mathan Somasundaram, CEO of Deep Data Analytics.
U.S. Treasury yields and the greenback reacted to Federal
Reserve Chair Jerome Powell being nominated for a second term on
Tuesday, reinforcing bets that U.S. interest rates would rise
That weighed on bullion prices, which fell to a three-week
low. Local gold stocks shed 1.1%, with Newcrest Mining
and SSR Mining leading losses, slumping 1.2%
and 0.9% respectively.
Tech stocks too bore the brunt of a selloff in their
U.S. counterparts overnight.
Heavyweights Afterpay and Wisetech Global
fell 0.2% and 2.4% respectively. Software maker TechnologyOne
slid 8.6% in its worst day since May 2019, hurt by a
rating downgrade from brokerage Jefferies.
Energy stocks remained strong despite uncertainty in
oil prices as various countries agreed to release stockpiles of
crude to cool prices. The index was up 1.2%.
Somasundaram is bullish on the sector, saying the release of
strategic stockpiles do not address oil prices in the medium
term in a market that looks forward.
New Zealand's benchmark S&P/NZX 50 rose 0.62% to
12,766.79 after its government said it would reopen the country
to foreign travellers from April next year.
The gains came despite the central bank lifting interest
rates for the second time in as many months amid rising
inflationary pressures and easing coronavirus curbs.
(Reporting by Harshita Swaminathan; editing by Uttaresh.V)