Australian shares erase early gains to close lower
Australian shares gave up early advances to close lower on Thursday, as investors booked profits after encouraging cues from U.S.-China trade talks fuelled two sessions of record gains.
The S&P/ASX 200 index ended 0.3% lower at 8,565.1 points after rising as much as 0.3% early in the session. The benchmark closed at record highs in the previous two sessions.
Markets globally were closely monitoring the U.S.-China trade talks this week, which resulted in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students access to U.S. universities.
However, the United States saying it was readying a partial evacuation of its Iraqi embassy due to heightened security risks in the region proved a dampener for risk appetite.
Back in Sydney, heavyweight financial stocks ended 0.5% lower, dragged down by the 'Big Four' banks, which fell between 0.2% and 0.8%.
Australia's big lenders, often seen as the backbone of the economy, have seen a robust rally recently on expectations of lower near-term rates.
Australian shares hit record peak as US-China revive trade truce
Banking stocks, which have been beneficiaries from the last two rate cuts and the one expected in July, are naturally likelier candidates for any retracement or profit taking, said Junvum Kim, Asia Pacific senior sales trader at Saxo Markets.
Energy stocks ended flat. The sub-index rose as much as 2.3% to hit its highest level since March 4 in early trade, following a jump in oil prices on escalating U.S.-Iran tensions.
Gold stocks climbed 2.6%, limiting overall losses, as bullion prices firmed on escalating geopolitical tensions and a weaker dollar, while softer U.S. inflation data boosted expectations of Federal Reserve rate cuts.
New Zealand's benchmark S&P/NZX 50 index rose 0.3% to finish the session at 12,649.1.
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As CM Gandapur entered the assembly hall, government members welcomed him with desk-thumping, while opposition lawmakers chanted slogans such as "Ali Baba Chalees Chor". Some members carried placards bearing slogans accusing the government of corruption. PML-N MPA Sobia Shahid brought a bugle into the house and blew it during the session. In response, treasury members stood and shouted counter-slogans. Speaker Babar Saleem requested Opposition Leader Dr Ibadullah to intervene, after which the opposition benches resumed order. During the session, the K-P Assembly also passed a resolution expressing solidarity with Iran in light of recent Israeli aggression. In his concluding remarks, the finance minister said K-P had suffered from decades of militancy, and strengthening the police force remained a priority, noted a significant increase in the police budget, aimed at equipping the force with modern arms, protective gear, and surveillance equipment. He also acknowledged that the restoration of the Sehat Card scheme remained under consideration and was contingent on fiscal space.
