Australia: Shares end higher on US Fed survey, stimulus hopes

[SYDNEY] Australian shares ended higher for a second straight session on Thursday, with financials leading gains, as an upbeat US Fed survey and hopes of more stimulus boosted risk appetite.

A US Federal Reserve survey showed US business activity and employment increased modestly through late-August, though the sluggish and uneven growth spurred expectations for Washington to reach a deal on fresh stimulus.

"It's a one-way train at the moment for equities, and you've got to trade what you see while we're in a low-interest rate environment," said Nick Twidale, director at Xchainge.

"I think the pattern's set for the next few weeks but I think we might see some sharp corrections as well." The S&P/ASX 200 index finished 0.8 per cent higher to close at 6,111.60, its highest in over a week.

But gains were somewhat capped as Covid-19 hot spot Victoria reported a triple-digit rise in daily cases for the first time in four days, blunting hopes for a speedy rollback of lockdowns.

Heavyweight financials finished 1.3 per cent higher, supported by a strong showing from top lenders Westpac Banking Corp and Commonwealth Bank of Australia which rose 1.6 per cent and 0.8 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index rose 1.3 per cent, its most in nearly two weeks, to end at 12,055.05.

REUTERS