Australia: Shares jump 1.5% as Georgia elections reinforce hopes of US stimulus

[BENGALURU] Australian shares rose in early trade on Thursday, tracking strong performances on the Dow and the S&P 500, as investors bet on hopes that a Democratic sweep in Georgia would lead to further stimulus in the world's largest economy.

The S&P/ASX 200 index rose as much as 1.5 per cent to 6,707.6, notching its best intraday session since Nov 11, 2020.

The benchmark closed 1.1 per cent lower on Wednesday.

Overnight, Democrats took control of the US Senate as they won both seats in runoff elections in Georgia state, boosting the prospects for President-elect Joe Biden's ambitious legislative agenda.

Back home, Prime Minister Scott Morrison said the national cabinet will meet a month earlier than scheduled as Australian authorities seek to stop the spread of a more contagious variant of Covid-19 that emerged in Britain.

Australian miners jumped 3.1 per cent, with heavyweights BHP Group and Rio Tinto surging 4.5 per cent and 3.8 per cent, respectively.

Energy stocks rose 2.5 per cent, benefiting from robust oil prices after production cuts by Saudi Arabia and a fall in US crude inventories.

Gas explorers Woodside Petroleum and Santos Ltd advanced 3.3 per cent and 4 per cent, respectively.

Financials were also trading higher, with the so-called 'Big Four' banks gaining as much as 2.6 per cent.

Gold stocks fell 1 per cent as prices of safe-haven bullion suffered against a stronger dollar as US Treasury yields surged.

The country's top independent gold producer Newcrest Mining lost 1 per cent.

The number of issues on the ASX that advanced were 877, while 534 declined.

In New Zealand, the benchmark S&P/NZX 50 index rose 1.3 per cent to 13,510.9, buoyed by financial and utility stocks.

The country's main bourse operator NZX rose 2 per cent after posting strong trading figures for the month of December.

REUTERS