The Australian share market has closed higher as companies such as Wesfarmers have reported earnings results and investors have awaited guidance on interest rate hikes from the US central bank.
The benchmark ASX 200 index gained 0.8 per cent to reach 7,104.
The broader All Ordinaries index rose 0.7 per cent to 7,345.
Ten of 11 sectors gained on the top-200 companies index. Energy was the best-performing sector, gaining 1.5 per cent and 6.5 per cent for the past five days.
Wesfarmers posted a statutory net profit of $2.352 billion for the full year to June 30 2022, down 1.2 per cent.
The retailer sold off Coles in April, leaving it with brands such as Bunnings, Kmart, Target and Officeworks.
Its revenue was lower than estimates, up 8.5 per cent to $36.838 billion.
Earnings before interest and tax came in at $3.633 billion, down from $3.776 billion.
Wesfarmers managing director Rob Scott said the company had delivered solid financial results for the 2022 financial year despite the significant disruptions caused by COVID-19.
"The group’s financial results for the year reflect the material impact of COVID-19 on trading conditions during the first half, which included weeks where almost half of the group's retail stores were either subject to trading restrictions or closed,” Mr Scott said.
Kmart Group’s revenue decreased by 3.5 per cent for the year and its earnings before tax fell 39 per cent.
"As COVID-related disruptions eased, combined Kmart and Target trading results improved significantly, with strong combined earnings growth of 19.4 per cent in the second half," Mr Scott said.
Bunnings' revenue increased 5.2 per cent to $17,754 million, while its earnings before tax fell 0.9 per cent.
Shareholders will receive a dividend of $1.80, up from $1.78 a year ago.
Shares of Wesfarmers closed up 0.6 per cent.
Bega Cheese posted a 69 per cent drop in profit after tax to $24.2 million due to rising costs, COVID-19 and supply-chain problems.
Revenue rose 45.2 per cent to $3.01 billion, while earnings before tax plummeted by 18.8 per cent to $149.9 million.
Costa's pre tax profit fell 1.1 per cent to $53.6 million, and net profit ws down 9 per cent to $40.3 million.
Revenue rose 15 per cent to $708.7 million.
Bega Cheese was the top stock, up 11.7 per cent. Viva Energy gained 6.8 per cent, Qantas gained 6.5 per cent, Life360 rose 4.9 per cent and Champion Iron gained 4.1 per cent.
Polynovo lost 18.8 per cent, Appen Limited fell 5.5 per cent, Zip Co shed 5.2 per cent, Nanosonics was down 6.6 per cent and Alumina dropped 4.1 per cent.
Afterpay stocks, which are listed on the ASX under parent company Block, were up 0.8 per cent. The buy now, pay later giant is closing down its "Money by Afterpay" app, which it ran as a partnership with Westpac. It was also unaffected by the announcement, and was up 0.4 per cent.
The Australian dollar was down by 0.3 per cent to 69.58 US cents.
Wall Street up
On Thursday, the ASX 200 index lifted 0.7 per cent, to close at 7,048 points as some of the nation's biggest companies reported better-than-expected profit results.
On Wall Street, the Dow rose 1 per cent, to 33,291. The S&P 500 jumped 1.4 per cent to 4,199, and the Nasdaq Composite gained 1.6 per cent to 12,639.
Investors are awaiting new details of rate hikes from Federal Reserve Chairman Jerome Powell's speech scheduled for midnight AEST time at the annual Jackson Hole, Wyoming, symposium.
Mr Powell is expected to reiterate the US central bank's position on putting a lid on infiltration by aggressively hiking rates.
It's also expected the Fed Reserve will be slow to cut interest rates.
"We're in a period of time between the end of the second-quarter earnings season and meaningful additional data from the Federal Reserve," Bill Northey, senior investment director at US Bank Wealth Management said.
"Markets are churning a bit with a reasonably low level of volatility."
The fed funds rate is now in a range of 2.25 per cent to 2.5 per cent. The terminal rate of 3.50 per cent to 3.75 per cent is expected by the first quarter of next year.
The yield on the closely watched 10-year US Treasury note faded after recently hitting a two-month high.
Declining interest rates tend to benefit technology stocks trading at high valuations.
"Lower interest rates have certainly put some support underneath some of the more growth-oriented sectors," Mr Northey said.
Nvidia jumped 4 per cent after the graphics chipmaker gave a weaker-than-expected quarterly forecast that many investors viewed as signalling the worst of a sales downturn may be over.
Apple and Microsoft rose more than 1 per cent, while Amazon and Google-owner Alphabet added more than 2 per cent, with all four companies making substantial contributions to the Nasdaq's increase.
All 11 S&P 500 sector indexes rose, led by materials up 2.2 per cent, followed by a 2 per cent gain in communication services.
Data earlier in the day showed the US economy contracted less than initially thought in the second quarter, dispelling some fears that a recession was underway.
Oil prices rose in afternoon trade (Australian time) on signs of improving demand.
Brent crude rose 1 per cent to $US100.37 a barrel.
Spot gold edged lower to $US1,771.10 an ounce.
Iron ore futures fell by 19 cents or 0.2 per cent to $US104.96 a tonne.
In Europe on Thursday, the pan-European STOXX 600 index gained 0.3 per cent, Germany’s DAX added 0.4 per cent and Britain's FTSE rose 0.1 per cent.
ABC/Reuters
