Australia: Shares end higher on US jobs data, stimulus boost

[SYDNEY] Australian shares closed higher on Friday on hopes for a swifter global economic rebound after US President Joe Biden signed into law a massive US$1.9 trillion stimulus package, while upbeat US jobs data also painted a picture of recovery.

The S&P/ASX 200 index rose 0.8 per cent to 6,766.80 by the close of trade, clocking a gain of the same margin for the week.

Mr Biden on Thursday signed into law one of the biggest relief packages in the US history, aimed at spurring economic growth, while data showed fewer-than-expected Americans filed new claims for unemployment benefits last week.

"The Biden stimulus will be positive for American and Asian markets in the short-term," Jeffrey Halley, a senior market analyst at Oanda, said in a note.

"Its effects, and those of the general recovery, will start to accelerate in the March data everywhere. The inflation we will see is recovery inflation, not stagnation inflation."

Technology stocks, which had come under pressure this week, bounced 2.3 per cent. Buy-now-pay-later giant Afterpay added 2.2 per cent, while other software firms such as Altium , Appen and Xero added more than 2 per cent each.

New Zealand's benchmark S&P/NZX 50 index rose 1.3 per cent to finish the session at 12,426.77.

REUTERS