Australia: Shares rise on firm commodity prices, passage of US stimulus plan

[SYDNEY] Australian shares rose on Monday led by gains in heavyweight resource stocks on stronger commodity prices, while the passage of a US$1.9 trillion US Covid-19 relief plan and strong trade data from China raised hopes for a quicker economic recovery.

The S&P/ASX 200 index rose 0.4 per cent to end at 6,739.60.

The benchmark fell 0.7 per cent on Friday.

Over the weekend, the US Senate passed President Joe Biden's Covid-19 relief plan, one of the largest stimulus bills in US history, while data showed that the US economy created more jobs than expected in February, boosting risk appetite globally.

News out of Asia was also positive, with data on Sunday showing China's iron ore imports rose 2.8 per cent for the first two months of 2021, as demand for the steelmaking ingredient was supported by a firm consumption outlook.

Price of iron ore, Australia's biggest export to top consumer China, has surged in recent months, boosting shares of major miners of the commodity.

BHP Group rose 2.4 per cent, while rival Rio Tinto added nearly 3 per cent. The smaller Fortescue Metals Group inched marginally higher.

Gold miners also rallied, with Anglogold Ashanti surging nearly 5 per cent. Gold prices rose as the passage of the US stimulus package boosted the bullion's appeal as a hedge against inflation.

New Zealand's benchmark S&P/NZX 50 index fell 0.8 per cent to finish the session at 12,085.18.

REUTERS