Australia: Shares jump over 1% as miners, banks rebound

[BENGALURU] Australian shares jumped more than 1 per cent on Friday, led by a recovery in banks and miners, tracking overnight Wall Street gains as fears over fallout from hedge funds selling long positions to cover shorts waned.

The S&P/ASX 200 index was up 1.1 per cent at 6,725.70 by 2350 GMT, its best session since Jan 19, after ending about 2 per cent lower on Thursday. But it was on track to rise 1.7 per cent in January, its fourth straight monthly gain.

Overnight, all major US indexes rebounded, pushed by a strong start to earnings season and easing fears over hedge funds selling their long positions after GameStop Corp and AMC Entertainment tumbled following a recent meteoric rise.

Investors' focus is now on the Reserve Bank of Australia's policy meeting next week, where it is likely to hold its cash rate at a record low, as well as extend its A$100 billion (S$102 billion) quantitative easing programme.

Aussie miners were the top boosts to the benchmark, jumping 1.3 per cent, with heavyweights BHP Group and Rio Tinto gaining 1.3 per cent and 0.9 per cent, respectively.

Lynas Rare Earths soared 5.4 per cent, after the world's largest producer of rare earths outside China posted record high second-quarter sales revenue.

Financials rose nearly 1 per cent, with all the 'Big Four' banks jumping up to 1 per cent.

The country's No. 2 lender National Australia Bank advanced up to 1.1 per cent on acquisition of nearly 82 per cent stake in an online banking platform 86 400 Holdings for up to A$220 million.

Healthcare and technology firms also rose up to 1.7 per cent and 2.9 per cent, respectively.

In New Zealand, the benchmark S&P/NZX 50 index was up as much as 1.5 per cent at 13,279.96. It was set to gain 0.8 per cent for the month.

Financials and utilities pushed the index higher, with NZ-listed shares of Westpac rising 2.2 per cent and electricity generator Meridian Energy 3.3 per cent.

REUTERS