Australia: Shares rise on easing of curbs, low new infections

[BENGALURU] Australian shares gained on Monday, after recording heavy losses last week, as a near three-month drop in daily cases of the novel coronavirus in Victoria state and a gradual easing of restrictions in its capital Melbourne cheered investors.

The S&P/ASX 200 index rose 0.5 per cent to 5,887.5 by 0030 GMT. The benchmark had lost 1.1 per cent over the last week, posting its fourth straight weekly decline.

Victoria, a Covid-19 hot spot, reported 35 new cases in the last 24 hours - the lowest daily rise since late-June, with Melbourne's residents being allowed outside for exercise for two hours along with a shortening in the nightly curfew.

The second most populous state accounts for about a quarter of Australia's annual economic output.

Tensions between Australia and its top trading partner China were also on investors' radar as Canberra defended its rights to intelligence raids to prevent foreign interference, while Beijing condemned the raids.

Trade relations between the countries have been deteriorating, specifically after Canberra called for an investigation into the origins of the novel coronavirus, angering Beijing.

Among gainers on the benchmark, miners were the biggest boost, jumping as much as 2.4 per cent. BHP Group and Rio Tinto soared 2.7 per cent and 3.9 per cent, respectively.

Heavyweight financials sub-index added 0.6 per cent, with all Big Four banks advancing between 1.1 per cent and 1.7 per cent.

However, gains were capped by investment bank Macquarie Group, which fell 5.6 per cent after it warned of a 35 per cent hit to its first-half earnings citing challenging market conditions.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.3 per cent to 11,777.83. Local shares of Westpac Banking Corp and a2 Milk were among the top gainers, rising about 1.6 per cent.

REUTERS