The Australian sharemarket pared earlier gains but still finished higher on Monday, as strength in technology and select earnings plays offset weakness in mining heavyweights and profit-taking across the banking sector.
With United States markets shut for a public holiday and China closed for the Lunar New Year week, local earnings and bargain hunting dominated trading.
Wall Street had delivered a mixed performance on Friday, with softer U.S. inflation data boosting expectations of interest rate cuts.
The S&P/ASX 200 ended the session 19.5 points or 0.2% higher at 8,937.1, with eight of the 11 sectors closing higher.
Technology stocks staged a recovery after last week’s heavy sell-off, triggered by concerns that artificial intelligence could disrupt parts of the software sector.
WiseTech Global popped 12.9%, Xero gained 7.6%, and TechnologyOne advanced 5.6%.
The materials sector capped broader gains as iron ore futures slipped below the key US$100-a-tonne level in Singapore.
Major producers BHP, Rio Tinto and Fortescue came under pressure, down 1.5%, 4.1%, and 4.7%, respectively.
Among financials, ANZ dropped 3.1%, National Australia Bank lost 1%, while Westpac edged up 0.2% and Commonwealth Bank gained 1.2%. Bendigo Bank fell 2.2% after reporting earnings.
Consumer discretionary stocks also advanced, led by JB Hi-Fi, which surged 7.5% after posting a rise in first-half sales to $6.1 billion. The retailer said shoppers took advantage of November discounting to spend on new technology products.
Qube Holdings climbed 3.3% after signing an $11.7 billion sale transaction with Macquarie Asset Management, nearly three months after receiving an indicative $5.20-a-share cash bid.
a2 Milk Company rose 6.8% after reporting better-than-expected first-half results and upgrading its full-year outlook, supported by solid demand in China.
In contrast, Treasury Wine Estates slumped 5.2% after posting a $649 million first-half loss and scrapping its interim dividend.
Genesis Minerals rallied 7.4% after announcing it would acquire 100% of Magnetic Resources, with Magnetic shareholders to receive A$1.40 in cash plus 0.0873 new Genesis shares. The deal implies a fully diluted equity value of A$639 million.
Ansell gained 3.8% after reporting first-half net profit of US$95.7 million, noting that cost cuts had helped offset the impact of U.S. tariffs.
Shipbuilder Austal soared 19.5% as investors piled back into the stock following a 22.8% slump on Friday, when the company cut earnings guidance after overstating revenue tied to a U.S. Navy contract.
On the bond markets, 10-year and 2-year rates were 0.1% and 0.3% higher at 4.713% and 4.216%, respectively.
