Australia: Shares rise most in nearly four months on energy, mining stocks

[BENGALURU] Australian shares jumped the most since March on Tuesday, rebounding from the previous session's drop as an overnight rally on Wall Street spurred investors to pile into domestic energy and mining stocks.

The benchmark ASX 200 index ended 1.5 per cent higher at 7,342.2 points, recouping much of Monday's 1.8 per cent drop.

"It is a bounce back ... predominantly the big factor being a swing in Wall Street that is dragging the buyers back in," said Henry Jennings, a senior analyst at Marcustoday Financial Newsletter.

US stocks ended sharply higher overnight as investors loaded up on energy and other sectors expected to outperform as the economy recovers from the Covid-19 pandemic.

But the Australian market's gains were capped by concerns around Covid-19 cases in the country's most populous state of New South Wales (NSW), Mr Jennings said.

NSW earlier in the day extended its mask mandate for a week in Sydney after reporting its biggest spike in locally acquired coronavirus cases in almost a week.

The domestic energy index surged 2.2 per cent as oil prices also advanced. Engineering solutions firm Worley rose 6.1 per cent, while Santos added 3.2 per cent.

Benchmark heavyweight miners gained 2.1 per cent, with Rio Tinto firming 1.6 per cent and the world's largest miner, BHP Group, advancing 2.4 per cent.

Investment firm Washington H Soul Pattinson and Co added nearly 1 per cent after saying it would buy smaller rival Milton for A$4.05 billion (S$4.10 billion).

Milton's shares surged 16 per cent to a record high.

In New Zealand, the S&P/NZX 50 rose 0.3 per cent to 12,534.80 points, with retirement home operator Arvida Group leading the gains on the bourse with a 4.1 per cent rise.

A survey showed the country's consumer confidence rose in the second quarter with robust economic conditions expected to continue this year.

REUTERS