Australia: Shares extend gains to close near 14-month peak

[SYDNEY] Australian shares closed at their highest level in nearly 14 months on Thursday, extending gains from the previous session when mild inflation data pushed the benchmark index to snap its two-day losing streak.

The S&P/ASX 200 index closed 0.3 per cent higher at 7,082.3.

Gains in tech and gold stocks helped outweigh dismal trading updates from Woolworths and Fortescue Metals.

"The local market is extending yesterday's rally and rejoicing a paucity of inflation in the country," Henry Jennings, senior analyst at Marcustoday Financial Newsletter, said adding that the markets also took cues from firmer USfutures and US President Joe Biden's stimulus plan for a US$1.8-trillion stimulus.

The Australian Bureau of Statistics reported a lower-than-expected inflation for the March quarter on Wednesday.

Gold stocks rose 2.37 per cent as bullion prices jumped overnight after the US Federal Reserve kept interest rates unchanged Australia's biggest gold miner Newcrest jumped as much as 2.7 per cent after posting production of 512,424 ounces for the March period, beating the 491,539 ounces tipped by RBC analysts.

Technology stocks rose 2.25 per cent, tracking strong quarterly results from Facebook and Apple overnight. Buy now, pay later firm Afterpay led the gains, advancing 3.4 per cent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.5 per cent to 12,715.2.

REUTERS