Australia: Shares rise on likelihood of divided US Congress
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[BENGALURU] Australian shares climbed more than 1 per cent on Thursday, with the healthcare sector leading gains, as voting in US elections pointed to a divided Congress, which would make the Democratic agenda of tough financial regulations unlikely.
The S&P/ASX 200 index rose 1.3 per cent to 6,139.60, its highest closing since Oct 26. It ended 0.1 per cent lower on Wednesday.
Wall Street surged overnight as President Donald Trump's win in the major battleground state of Florida led investors to believe a Democratic Party-led Congress was not on the cards even if Joe Biden wins the presidency.
"Congress looks, at this stage, set to remain divided and this means certain changes will be harder to put into place then if there was, say, a clean sweep by the Democrats," said Steven Daghlian, market analyst at CommSec.
"Things like an increase in regulations for tech stocks, or for the energy industry as well, that makes it more difficult to take place." Both Mr Trump and Mr Biden have paths to 270 Electoral College votes as states tallied mail-in ballots. Mr Biden remained optimistic on winning, while the Republican incumbent filed lawsuits and demanded recounts.
The Australian health sector gained 2.8 per cent at close, with industry behemoth CSL, which brings in most of its revenue from the United States, gaining 3.5 per cent.
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The heavyweight financial sector climbed 1.5 per cent, with National Australia Bank finishing 3.3 per cent higher, after the country's third-largest lender announced a final annual dividend of A$0.30.
The remaining three of the "Big Four" banks all gained between 1 per cent and 2 per cent.
Tech stocks closed 1.8 per cent higher with Afterpay adding 2.5 per cent and WiseTech Global advancing 0.6 per cent.
Bucking the trend, miners slipped 0.2 per cent as iron ore prices fell. BHP Group inched 0.1 per cent lower, while Rio Tinto declined 0.8 per cent.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index closed 0.4 per cent lower at 12,249.98.
REUTERS
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