Australia: Gold stocks lift shares to 1-month high; corporate earnings loom

[BENGALURU] Gold stocks lifted Australia's benchmark index to a near one-month high on Tuesday as prospects of dour corporate earnings globally amid the coronavirus-induced uncertainty pushed investors to pile into the safe-haven metal.

The S&P/ASX 200 index, trading for the first time after the Good Friday and Easter holidays, was up 0.5 per cent, as of 0047 GMT, aided by a more than 8 per cent surge in gold stocks as investors stocked up on the precious metal.

Gold prices soared to their highest in more than seven years on Tuesday, as panicked investors opted for bullion on fears of coronavirus blow to the global economy.

The Australian benchmark index touched its highest level since March 16.

Energy stocks also supported the bourse as they firmed nearly 1 per cent after a record output-cut deal by the Organization of the Petroleum Exporting Countries (Opec) and allies led by Russia.

However, gains on the sub-index were moderate and crude prices remained mixed as wider concerns over plummeting demand caused by the pandemic weighed.

"The deal ... will provide a degree of relief, but the challenge for the oil market is that the fundamental collapse in demand is a lot bigger than 10 million barrels a day," ANZ Research analysts wrote in a note.

Broader sentiment was subdued ahead of the latest corporate earnings season, with both the Dow and S&P 500 sliding overnight.

Major Wall Street banks, often considered key barometers of the global economy, begin reporting earnings this week and are expected to provide bleak forecast due to pandemic-fuelled uncertainty.

"To be sure, the near-term picture for corporate earnings is dire as the first-quarter earnings season kicks off," analysts at BlackRock said.

News-driven moves saw no. 2 lender Westpac give up 1.7 per cent after the bank pointed to lower first-half earnings and higher credit losses.

Meanwhile, Afterpay soared almost 18 per cent to a more than one-month high after the buy-now-pay-later firm said its year-to-date sales had more than doubled.

Outside financial markets, a bright spot came in the form of a drop in the daily growth rate of new coronavirus cases in Australia on Monday. However, officials warned that it was too soon to start easing social distancing rules or reopen the economy.

In New Zealand, the main S&P/NZX 50 index jumped 1.2 per cent, supported by gains in technology and consumer stocks.

REUTERS