Australia: Shares hit near two-month high as banks shine

[BENGALURU] Australian shares hit a near two-month high on Tuesday, led by banking and technology stocks, as expectations that the United States would soon pass a coronavirus relief package lifted global equity markets.

The S&P/ASX 200 index rose 1 percent to 6,193 by 0005 GMT, after closing 0.5 per cent higher on Monday.

In New Zealand, the main S&P/NZX 50 index gained 0.8 per cent to hit an all-time high of 12,454.57.

Overnight, all three major US stock indexes closed sharply higher after optimism was sparked by the Trump administration's call to pass a leaner coronavirus relief bill as negotiations on a broader package ran into resistance.

Market participants are now waiting for China's monthly export data due later in the day for further direction.

A Reuters poll showed exports likely rose for a fourth straight month in September as the world's second-biggest economy and Australia's top trade partner stays on the path to economic recovery.

Australian financial stocks climbed as much as 2.6 per cent on Tuesday to hit a two-month high, with the "Big Four" banks adding between 1.5 per cent and 3 per cent.

IT stocks firmed 1.9 per cent and were on track to post a seventh session of gains, taking cues from a tech rally in the United States.

Buy-now-pay-later firm Afterpay Ltd rose 4.4 per cent to a record high and led the sub-index higher.

Meanwhile, coal producers fell sharply on reports China was blocking shipments of the commodity from Australia.

Whitehaven Coal slid 5.3 per cent and was the biggest loser on the benchmark, while New Hope Corp dropped 5.6 per cent.

Australia-listed shares of real estate developer Unibail Rodamco SE jumped 6.8 per cent to top the benchmark index, after the company entered an agreement to sell an office building for 620 million Euros (S$994.3 million).

In New Zealand, local shares of Australia and New Zealand Banking Group added 4.3 per cent to lead gains, followed by Argosy Property's 2.8 per cent rise.

REUTERS