Australia: Shares post solid start to year as miners shine

[SYDNEY] Australian shares ended the first trading day of the new year on a solid note as mining stocks gained on strong iron ore and bullion prices, while a drastic drop in Covid-19 cases in the country's largest state also aided sentiment.

The benchmark S&P/ASX 200 index rose 1.5 per cent to 6,684.20 points at the close of trade, marking its best day since Nov 24.

Gold stocks led gains among the sub-sectors, rising over 5 per cent, as bullion prices hit an eight-week high amid a spike in global Covid-19 cases and prospects of tougher coronavirus control measures.

Heavyweights Evolution Mining, Newcrest Mining and Northern Star Resources gained between per cent to 4 per cent.

Miners notched up a 2.7 per cent climb, as iron ore prices extended their bull run into the new year, jumping more than 3 per cent buoyed by tight supply and robust demand.

New Zealand markets were closed for a public holiday.

REUTERS