Australia: Shares climb as upbeat GDP data cements economic recovery hopes

[BENGALURU] Australian shares rose on Wednesday, with miners and gold stocks leading the gains, as investors remained upbeat on recovery hopes after data showed that the country's fourth-quarter gross domestic product (GDP) grew at a faster-than-expected pace.

The S&P/ASX 200 index was up 0.6 per cent at 6,803.20 as of 0043 GMT. The benchmark ended 0.4 per cent lower on Tuesday.

Figures released by the Australian Bureau of Statistics on Wednesday showed that GDP grew 3.1 per cent in the December quarter, in further evidence that the economy is roaring back from the lockdown-induced recession.

Economists in a Reuters poll had forecast a 2.5 per cent rise following an upwardly revised 3.4 per cent gain in the third quarter.

The numbers come at the heels of upbeat data on Monday that showed home prices surged at the fastest pace in almost two decades in February and job advertisements also skyrocketed.

Further aiding sentiment, the Reserve Bank of Australia kept rates unchanged at its March meeting on Tuesday and committed to maintaining its "highly supportive monetary conditions" until its employment and inflation goals are met.

Domestic gold stocks gained up to 2.9 per cent, set for their best day in more than a week, helped by higher bullion prices.

The mining sector advanced nearly 3 per cent, on track for its best session since Feb 22.

Mining giant BHP Group climbed 4.5 per cent to hit a record high, while peer Rio Tinto advanced 2.4 per cent.

Rio Tinto said on Wednesday Simon Thompson will step down as chairman next year after deciding not to seek re-election as a non-executive director at the miner's 2022 annual general meeting.

The high-profile financial sector added as much as 0.5 per cent. National Australia Bank, Australia and New Zealand Banking Group and Commonwealth Bank of Australia each gained as much as 0.9 per cent. Westpac inched 0.5 per cent higher.

In New Zealand, the benchmark S&P/NZX 50 index slipped 0.4 per cent to 12,296.07.

Top losers were Meridian Energy losing more than 3 per cent, and Napier Port Holdings down 3.5 per cent.