The Australian share market closed higher as CBA reports a jump in profit, giving a boost to banks.
The benchmark ASX 200 closed 1.3 per cent higher, at 7,268, while the broader All Ordinaries gained around 1.2 per cent, to 7,572.
Reporting season continued to influence stock moves.
Tech and banks were the best performing sectors.
Computershare was the top-performing stock in early trade, up 12.3 per cent after reporting a jump in profit yesterday.
Commonwealth Bank of Australia stocks were up 5.8 per cent after the nation's biggest bank reported a jump in half-year profit.
CBA's half-year cash profit rose 23 per cent, to $4.75 billion, thanks to growth in mortgage and business loans.
The bank also announced a $2 billion on-market buyback of shares.
CBA also warned that intense competition for a share of the home loan market was putting pressure on margins.
"Looking ahead, we expect home loan price competition and switching to continue to weigh on margins in the second half," CBA said in a statement
The pressure has also been worsened by a customer shift towards fixed-rate loans, which tend to be priced lower than variable rates.
The bank also said it expected the Australian economy to have a strong year, despite the early challenges from the Omicron strain of COVID-19. It pointed to the low unemployment rate and high participation rate as positive signs for the economy.
CBA also reported a net interest margin of 1.92 per cent, which was lower than the 2.06 per cent it reported a year ago, and 17 basis points below the second half of the financial year.
It declared an interim dividend of $1.75 per share, higher than the $1.5 a share it paid to shareholders a year earlier.
Westpac closed 2.4 per cent higher, ANZ gained 1.8 per cent and NAB added 2.1 per cent.
Other top-performing stocks on the top 200 companies index were miners South32, Alumina and health company Imugene.
Meanwhile, Mineral Resources stocks was the worst-performing stock on the ASX 200. The lithium and iron ore miner's stocks tumbled 6.5 per cent after announcing a drop in half-year earnings, and no dividend for shareholders.
The miner's earnings reported an underlying net loss of $36 million, compared with a $430 million profit a year earlier.
Half-year profit was $20 million, down from $519.3 million compared to the same time the previous year.
Revenue was $1.4 billion, down 12 per cent. Earnings before interest tax and depreciation (EBITDA) was $156 million, down 80 per cent on the previous corresponding period.
The miner has blamed its bad results on a drop in iron ore prices and worker shortages.
Other bottom movers on the ASX 200 were Bapcor, Nanosonics, Fortescue Metals and IDP Education.
The Australian dollar was up 0.3 per cent, and buying 71.54 US cents, at 4:25pm AEDT.
Consumer confidence
Rising inflation and looming interest rate hikes have contributed to a drop in consumer sentiment for the third straight month, according to Westpac's monthly survey.
"At 100.8 the index is just above the 100 level indicating the optimists only just outweigh the pessimists," Kristina Clifton, CBA senior economist noted.
Ms Clifton said the fall in sentiment was a little surprising given Omicron cases had fallen.
"This may reflect rising inflationary pressures. In particular the price of petrol, an item that is relatively essential, is up strongly this year and is impacting household budgets," she said.
The state breakdown showed that consumer sentiment was down across all states this year. Sentiment was lowest in Tasmania, Victoria and NSW.
"The fall in sentiment is at odds with our internal CBA credit and debit spending data. It shows that consumer spending likely troughed in early January and has been steadily improving since.
"The sentiment data though does highlight the sensitivity to potential rate rises later in 2022."
Commodities
Oil markets cooled as concerns about supply issues diminish ahead of more talks between US and Iran about a nuclear deal, which could see sanctions on oil sales lifted.
Brent crude was up 0.4 per cent, to $US91.17 cents.
West Texas crude was also up about 0.4 per cent, at $US89.75 per barrel.
Spot gold was flat, at $US1,828.60 per ounce.
Iron ore was up 55 US cents or 0.4 per cent overnight to $US149.95 per tonne.
Wall Street investors shake off Monday blues
In New York, the major indices closed in the green on Tuesday after a disappointing start to the trading week.
The Dow Jones Industrial Average gained 1 per cent, to 35,462.78. The S&P 500 added 0.8 per cent, to 4,521.54, while the Nasdaq Composite rose 1.28 per cent, to 14,194.45.
Banking stocks also did well as the benchmark 10-year US Treasury yield hit its highest level since November 2019, on expectations US monetary policy would soon tighten.
Pfizer Inc lost 2.8 per cent after reporting full-year sales forecast for its COVID-19 vaccine and antiviral pills had fallen short of estimates.
Facebook owner Meta Platforms had a fourth day of losses, down 2.1 per cent, after billionaire investor Peter Thiel decided to step down from the company's board. Last week a gloomy company forecast wiped out billions of dollars in market value.
In Europe, the pan-European STOXX 600 index and Britain's FTSE were flat, while Germany’s DAX rose 0.25 per cent.
ABC News/Reuters
