Aust shares follow Wall St higher

The Australian share market has continued its upward momentum with investor sentiment boosted by hopes of slower rate hikes by the US central bank.

The benchmark S&P/ASX200 index was up 28.3 points, or 0.39 per cent, to 7260.1, its best level since May 30.

The broader All Ordinaries was up 27.1 points or 0.37 per cent to 7449.5.

The gains on Thursday came after minutes from the November meeting of the US Federal Reserve showed officials favoured less aggressive rate hikes in the coming months, a scenario favoured by traders worried about a global recession due to aggressive central bank action.

It led to all three major indexes on Wall Street closing higher amid broad-based gains.

Local traders took the cue from the US trading, and all sectors other than energy were trading higher by midday.

The gains were led by mining stocks, with the top iron ore miners BHP, Rio Tinto and Fortescue each trading between 1-1.5 per cent higher.

Gold stocks joined the party after the price of the precious metal firmed up following the release of the Federal Reserve’s minutes. Shares in Evolution Mining, Northern Star and Newcrest Mining advanced 2-4 per cent.

Beaten down local technology shares also followed their US counterparts higher with Brainchip, Megaport and Wistech the best performers, rising 3-6 per cent.

However, energy stocks bucked the trend as crude prices slipped after the Group of Seven nations suggested a price cap on Russian oil. Woodside Energy and Santos shares were down 0.7 per cent each.

Harvey Norman shares were down nearly 2 per cent to $4.16 despite the electronics and furniture retailer announcing solid first quarter sales growth in Australia and even better numbers in Malaysia.

Qantas shares continued to fly higher, up 1.7 per cent to $6.29, a day after the national carrier upgraded its half-year profit forecast on strong travel demand.

Shares in Kogan.com jumped nearly 10 per cent to $3.76 after the online retailer said it expects to return to historically higher operating margins during the second half of the current financial year.

Meanwhile, the Australian dollar rose to 67.43 US cents, from 66.42 US cents at Wednesday’s ASX close, following a weakening in its US counterpart.