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Australian shares ended largely unchanged on Thursday, as gains in financials and tech stocks were offset by a drag in miners, with investors assessing mixed messages from U.S. Federal Reserve Chair Jerome Powell on further rate hikes.
The S&P/ASX 200 index rose 0.1% to 7,311.1 points. The benchmark fell 0.8% on Wednesday.
Heavyweight miners Rio Tinto Ltd and BHP Group Ltd were among the top losers on the benchmark as their shares traded ex-dividend, driving a 1.0% drop in the mining sub-index.
Meanwhile, investors digested remarks from Powell on his second day of testimony to U.S. Congress on Wednesday, where he reiterated there might be a need to raise interest rates more than previously expected to tame inflation.
They will now look to cash in on the U.S. February unemployment data expected ahead in the week.
"After a full year of hiking in lock-step by global central banks, the new norm is that rate makers have started to look at different paths that unavoidably confused the market, leaving investors struggling to find a direction," said Hebe Chen, market analyst at IG Markets.
Back in Sydney, the local banks rose 0.6%. Three of the "Big Four" banks, except Commonwealth Bank of Australia , have passed on a quarter-point rate hike announced by the Reserve Bank of Australia to their customers by lifting home loan rates.
Tech stocks also gathered momentum, with the sub-index ending the day 2.7% higher. Sector major Xero Ltd rose 10.7% after it said it would cut 700 to 800 jobs globally in an effort to reduce costs, joining a string of global tech firms that have announced layoffs.
Energy companies closed 1.4% higher, pounding on the volatile oil prices overnight. Activist investors have urged oil and energy giant Santos' shareholders to vote against their remuneration report on climate risks. Santos shares ended the day 1.1% up.
New Zealand's benchmark S&P/NZX 50 index fell 0.2% to finish the session at 11,826.2 points. (Reporting by Rishav Chatterjee in Bengaluru; Editing by Varun H K)