Australia: Shares end higher as mining, energy stocks firm

[SYDNEY] Australian shares ended higher on Thursday, following a firmer finish on Wall Street, as mining and energy stocks rallied on the back of higher commodity and oil prices.

The S&P/ASX 200 index rose 0.68 per cent to 6,042.2 at the close of trade. It had earlier risen as much as 0.8 per cent after all three major US indexes booked gains overnight on a surprise profit from Disney and hopes for a new coronavirus relief package.

The benchmark pulled back slightly after the domestic government hiked its unemployment forecast due to the reimposition of restrictions in the country's second-most populous state of Victoria.

"The market is still benefiting from the afterglow of the Wall Street performance, but after the not-so-good domestic news it is just managing to hold on to the gains", said James Tao, market analyst at CommSec.

Australian stocks have rallied nearly 40 per cent after hitting their lowest this year in March, but a recent jump in domestic coronavirus infections and the reimposition of lockdowns have weighed on investor sentiment.

Leading the gains on Thursday, mining stocks surged more than 2 per cent as iron ore and base metal prices jumped and gold steaded near record highs.

Global miners BHP Group and Rio Tinto gained 4.9 per cent and 1.5 per cent, respectively.

Energy companies Santos and Ampol advanced 3.8 per cent and 2.2 per cent, respectively, after oil prices hit a five-month high overnight.

New Zealand's benchmark S&P/NZX 50 index closed largely flat, as losses in healthcare and consumer stocks offset gains made by financial stocks.

REUTERS