News: WBC Australia shares recover from early losses; NZ down

Australian shares recovered from early losses to rise marginally on Thursday led by gains in telecom stocks, while financial and energy shares lost ground tracking losses in the U.S. financial sector overnight and lower global oil prices.

The S&P/ASX 200 index (xjo) rose about 0.2 percent to 5,337.20 at 0308 GMT after it fell as much as 0.8 percent in early trade.

"What's holding the market a little up - as it looked to open a lot lower - has been Telstra's reaffirmation of guidance," said James McGlew, executive director of corporate stockbroking at Argonaut.

Telstra Corporation Ltd (TLS) rose as much as 3 percent, its biggest intraday percentage gain in nearly five months, after the company reaffirmed its guidance for FY2017 and said it would cut core fixed costs by over A$1 billion ($748 million) by FY2021.

The telecom sector was up 1.7 percent. Overnight in the U.S., the S&P financial sector index .SPSY dropped 1.4 percent, ending a 7-day rally, as investors searched for clarity on how much of Trump's campaign promises will become a reality. [.N]

"We (Australian stocks) have been following the sentiment on Wall Street since Trump's victory in the U.S. election, but have finally taken a breather," McGlew said.

Tracking the loss in U.S. financial stocks, the Australian financial index .AXFJ dropped as much as 1.2 percent earlier, snapping two sessions of gains.

Weak earnings in the second half also weighed on sentiment. "2H16 reporting season (for the Australian banking sector) was generally soft...the weakest feature of the results was revenue, with little to no revenue growth despite good loan growth," Deutsche Bank said in a note.

Westpac Banking Corp (WBC) and Commonwealth Bank of Australia (CBA) were the biggest drags on the financials benchmark.

Energy stocks fell about 1.4 percent as global oil prices eased overnight and in early Asian trade. [O/R]

Woodside Petroleum Ltd (WPL) and Santos Ltd (STO) fell as much as between 2.5 percent and 3.5 percent.

New Zealand's benchmark S&P/NZX 50 index (nz50) snapped three sessions of gains to drop 0.3 percent to 6,801.93 as of 0308 GMT, dragged down by financials, materials and healthcare stocks.

Fletcher Building Ltd (FBU), which rose to an 8-week high on Wednesday, fell as much as 2.5 percent.

Fisher & Paykel Healthcare Corporation Ltd (FPH) extended losses to fall as much as 2.6 percent.

($1 = 1.3369 Australian dollars)