ASX 200 closes highest in more than 3 months
Financials end at 3-month high
James Hardie among top laggards
Updates to close
By Sherin Sunny
May 21 (Reuters) - Australian shares ended higher on Wednesday, with financials extending their rally, a day after the central bank's widely expected rate cut and caution around global trade uncertainties from U.S. tariffs set the stage for further easing.
The S&P/ASX 200 index closed 0.5% higher at 8,386.8, its highest close since mid-February. The benchmark finished lower only in three of the fifteen sessions in May.
Financials gained for the second straight session, climbing 0.7%.
The "Big Four" lenders rose 0.2%-1.4%, to lend the biggest boost to the benchmark, after the Reserve Bank of Australia's (RBA) and dovish tone from Tuesday hinted at robust lending growth in the future despite some margin contraction.
With Australian household debt at 216.9% of income, among the highest globally, banks such as the Commonwealth Bank, Westpac Bank and National Australia Bank remain key beneficiaries of the rate cuts, said Jessica Amir, a market strategist at Moomoo Australia.
"Property investors also benefit as they're able to claim tax deductions."
Rate-sensitive sectors, real estate and technology , ended 0.3% and 0.6% higher, respectively.
Gold stocks climbed 5% as investors sought safety in the safe-haven asset amid U.S. fiscal uncertainty.
Emerald Resources , Perseus Mining and Regis Resources gained between 6.9% and 9.7% and were among the top gainers on the benchmark.
Miners' gains were underpinned by strong commodity prices, with an uptick in iron ore helping the sub-index advance 1.2%.
Energy stocks mirrored a more than 1% rise in prices after reports said Israel was preparing an attack on Iranian nuclear facilities, raising supply concerns.
James Hardie Industries' Australia-listed stock was among the biggest drags on the main index after the fibre cement maker a 9% slump in full-year profit and a gloomy outlook.
New Zealand's benchmark S&P/NZX 50 index ended 0.5% higher at 12,703.1 points.
(Reporting by Sherin Sunny in Bengaluru; Editing by Sumana Nandy)
((Sherin.Sunny@thomsonreuters.com [Sherin.Sunny@thomsonreuters.com]))
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