Australia: Shares make cautious gains ahead of US election outcome

[BENGALURU] Australian shares closed higher on a cautious note, as traders braced for restlessness during the US Presidential election week, while gold stocks led the gains as uncertainty stoked bids for the safe-haven metal on Monday.

The S&P/ASX 200 index closed up 0.4 per cent at 5,951.30, following a 0.6 per cent slide on Friday.

Global markets await the hotly contested US election, with Democrat Joe Biden holding a commanding national lead over President Donald Trump. Nevertheless, Mr Trump has stayed competitive in the swing states that could decide the White House race.

"Some attention turning to the outcome of who will hold the Senate, as a Biden White House without Democratic control of the Senate could still mean difficulty for already slow progress in a new fiscal stimulus package to pass," said James Tao, market analyst at CommSec.

Wall Street, along with global markets, have wildly swung in volatility in the weeks building up to the US election over implementation of a stimulus deal to revive the pandemic-battered economy.

However, markets received some cheer after data from China signalled that factory activity in October had expanded at its fastest pace in a decade.

On the home front, the Australian gold index gained 1.1 per cent, helped by a rise in bullion prices, as increased global uncertainty drew investors to the safety of gold.

Catalyst Metals rose 6.1 per cent while Bellevue Gold advanced 4 per cent.

The heavyweight financial sector gained 0.4 per cent after the country's second-largest lender Westpac posted full-year results and said it intends to return to a half-yearly dividend cycle.

"Westpac Bank announced this morning it intends the resume dividends. This is a positive for financials today," Brad Smoling, managing director at Smoling Stockbroking, said.

AMP jumped 10 per cent after the wealth manager said the proposed takeover offer from Ares Management implied a 21 per cent premium to Friday's closing price.

New Zealand's benchmark S&P/NZX 50 index slipped 0.1 per cent to 12,070.83.

Heartland Group Holdings slid 5.2 per cent while Pacific Edge shed 4.2 per cent.

REUTERS