The Australian sharemarket gained on Thursday, clawing back a portion of recent declines as risk sentiment returned to markets, with the technology sector leading gains.
The S&P/ASX 200 closed 39.1 points or 0.4% higher at 8,940.3, with eight of 11 sectors trading in positive territory.
Global equities had come under pressure on Wednesday, sending the ASX 200 down 1.9%, after fears of a prolonged conflict involving Iran raised concerns that higher oil prices could reignite inflation.
However, stronger-than-expected U.S. economic data overnight helped steady sentiment. Figures from ADP showed private payrolls increased more than forecast in February, while the Institute for Supply Management reported solid growth in the services sector.
In addition, Donald Trump formally nominated former Federal Reserve governor Kevin Warsh as the next Fed chair, reinforcing expectations that U.S. interest rates could be lowered later this year.
Market sentiment was also supported by reports suggesting Iran had approached the United States about resolving the escalating Middle East conflict, although Tehran later denied the speculation.
On the local market, rate-sensitive technology shares led the rebound. WiseTech Global surged 7.1%, Xero gained 4.3%, and TechnologyOne added 4.4%.
Investors also rotated into defensive healthcare stocks. CSL rose 2.5% after its influenza vaccine division secured a contract to supply 15 million doses of a cell-based adjuvanted pandemic flu vaccine to Canada in the event of a pandemic.
Energy stocks extended their gains, with Ampol rising 8.5%, Santos gaining 1%, and Viva Energy jumping 11.9% after Bloomberg reported that China had instructed its major oil refiners to suspend diesel and gasoline exports. Woodside Energy slipped 1% after trading ex-dividend.
The financial sector was mostly higher, with Commonwealth Bank up 0.4%, National Australia Bank adding 1.4%, and Westpac gaining 0.6%, while ANZ Group slipped 0.5%.
The Materials sector finished lower, with mining companies performing in a mixed fashion; BHP fell 1% after trading ex-dividend. Rio Tinto gained 1.2%, while Fortescue added 2.1%.
Meanwhile, defence technology company DroneShield jumped 10.1%, recovering after heavy selling earlier in the week.
In corporate developments, Pengana Capital Group gained 4.2% after announcing it had appointed Antipodes Partners to assist with managing its international equities listed investment company.
On the bond markets, Australian government yields edged higher, with the 10-year yield rising 0.3% to 4.804% while the two-year yield climbed 0.3% to 4.313%.
