Australia: Shares close higher on gold stocks, central bank comments

[BENGALURU] Australian shares settled higher on Monday, helped by a record rally in gold stocks and reassurances of further support from a senior central bank official to ease the economic pain caused by the coronavirus pandemic.

The S&P/ASX 200 index rose 0.34 per cent to 6,044.2, with gold stocks adding more than 4 per cent to hit a record peak as an escalating diplomatic row between the US and China hammered the US dollar and sent the safe-haven gold to record highs.

Helping investor sentiment further, Reserve Bank of Australia Assistant governor Chris Kent said the central bank was ready to buy government bonds if market conditions deteriorated significantly.

However, broader gains were capped on concerns over surging coronavirus cases. The country recorded its highest daily tally of deaths from the coronavirus on Sunday as the authorities struggled to contain more than 100 clusters in Victoria state.

"It's one of those situations where there's a couple of balls up in the air... the market is still trying to figure out what lies ahead," said James Tao, market analyst at CommSec.

"The Covid situation is probably the main focus at the moment, with the Sino-US tensions somewhere in the background".

Among gainers, Newcrest Mining, the country's largest listed independent gold miner, soared 5 per cent to a near 10-month peak, while Emerald Resources jumped 9.5 per cent.

The mining index climbed 1.8 per cent, with BHP Group gaining 0.9 per cent.

Tech stocks also rose, with REA Group adding nearly 3 per cent and NEXTDC advancing 2.2 per cent.

Energy stocks slipped as oil prices fell, with Woodside Petroleum and Santos shedding 0.8 per cent and 1 per cent, respectively.

Lynas Corp was the top gainer on the benchmark after the company signed a contract with the US Department of Defense to begin initial design work for its Pentagon-funded heavy rare earth separation facility in Texas.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.4 per cent, dragged by financials.

New Zealand-listed shares of Westpac Banking Corp ended 1.2 per cent lower.

REUTERS