Australia Market rises on upbeat offshore lead

Australia stock market finished session firmly in positive territory on Tuesday, 18 October 2022, driven by gains in technology and banking stocks, thanks to strong lead from Wall Street overnight and a dramatic U-turn in British fiscal policy.

Investor confidence rebounded after news the U.K. government is reversing course on previously announced fiscal plans. Britain's new finance minister Jeremy Hunt reversed almost all of the tax measures announced by his predecessor Kwasi Kwarteng in the mini-budget on September 23.

Also booted market sentiment was minutes from the Reserve Bank of Australia's last meeting that showed the central bank's decision to reduce the size of the interest rate hikes was "finely balanced."

At closing bell, the benchmark S&P/ASX200 index was up 114.78 points, or 1.72%, to 6,779.22. The broader All Ordinaries index added 121.89 points, or 1.78%, to 6,976.20.

The top performing stocks in S&P/ASX200 index were NOVONIX and HUB24, up 19% and 14.2% respectively. The bottom performing stocks in S&P/ASX200 index were ST BARBARA and ADBRI, down 21.6% and 4.5% respectively.

Financials led the gains, with the country's "big four" banks advancing between 1% and 2.4%.

Tech stocks tracked their Nasdaq peers higher. Xero and ASX-listed shares of Block Inc climbed 6.1% and 10.8%, respectively.

Energy stocks fell 0.6%, with Woodside Energy and Santos losing 0.5% and 0.9%, respectively.

Global miner Rio Tinto ended on a flat note after forecasting annual iron ore shipments at the lower end of its guidance. St. Barbara shares plummeted 21.6% after the gold miner cut its production guidance and deferred capital expenditures on major projects by a year.

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