News: SBM Australian shares edge higher as traders gauge hawkish Fed stance

	  Gold stocks record best day since Dec 21, 2022 

	  Warrego Energy closes 10% higher 

	  Energy stocks turn biggest laggards in ASX200 

(Updates to close)

Australian shares edged higher in tepid trade on Thursday, supported by banking and mining stocks, while investors continued to gauge the implications of the U.S. Federal Reserve's hawkish tone from their December meeting minutes.

The S&P/ASX 200 index (xjo) settled 0.1% higher at 7,063 points, paring most gains seen earlier in the session.

"Although some will be quick to point out that the ASX200 gave back 40 points of early gains today, a flattish close on the day does seem like a small win after the violent sell-off that rocked the first trading day of 2023," Tony Sycamore, a market analyst with IG wrote in a note.

Officials at the Fed's Dec. 13-14 policy meeting agreed the U.S. central bank should continue increasing the cost of credit to control the pace of price hikes, but in a gradual way intended to limit the risks to economic growth.

Fed Chair Jerome Powell said more hikes were needed, adopting a more hawkish tone than expected.

Shares across Asia were trading in a more upbeat mood as China abruptly dropped ultra-strict curbs on travel and activity.

Australian gold stocks .AXGD led the gains in the benchmark index as bullion prices firmed on a weakened dollar. The sub-index closed 2.5% higher to record its best session since Dec 21, 2022. Shares of St Barbara (SBM) gained 8.2%.

Miners .AXMM rose 0.5% while financials .AXFJ added 0.3%.

Tracking an overnight slump in oil prices, energy stocks .AXEJ emerged the biggest laggards and dropped 1.3%.

Healthcare .AXHJ and technology firms .AXIJ lost 0.7% and 1.1%, respectively.

Miners Whitehaven (WHC) and New Hope Corp (NHC) declined even as China partially resumed coal imports from Australia.

Shares of Warrego Energy (WGO) closed 10% higher after Hancock Energy raised its offer to buy the oil and gas explorer for A$440 million ($299.73 million).

New Zealand's benchmark S&P/NZX 50 index (nz50) gained 0.6%to finish the session at 11,651.3 points.

($1 = 1.4680 Australian dollars)