Australia: Shares rise on steady commodities, Wall Street rebound

[BENGALURU] Australian shares climbed on Friday, lifted by miners and oil and gas explorers as commodity prices stabilised, while an overnight rebound in Wall Street on signs of economic progress also lent support.

The S&P/ASX 200 index was up 0.5 per cent at 6,822 by 0108 GMT. The benchmark closed 0.2 per cent higher on Thursday.

US stocks rose in a late-day rally as investors bought stocks likely to do well in the recovery and picked up beaten-down shares in anticipation that the economy grows at its fastest pace in decades this year.

S&P 500 E-minis futures rose 0.1 per cent in early Asian trade, while Nikkei futures gave up early gains to dip 0.1 per cent.

Local markets were being cautiously optimistic, given the strong recovery in the US and Chinese markets, while they are shrugging off rising Covid-19 cases in Europe for now, Nick Twidale, chief executive officer of APAC for FP Markets, said.

"Conversely, if there is a downturn in these economies combined with the bad situation in European countries, then there may be a sharp correction," he added.

In Australia, miners led the gains after climbing nearly 1 per cent as Chinese iron ore futures rose amid worries of supply shortages. Rio Tinto and Fortescue Metals Group advanced 1.5 per cent each.

Energy stocks climbed up to 1.1 per cent as oil prices stabilised after a sharp drop overnight. Sector heavyweight Woodside Petroleum rose 2.4 per cent while Santos gained more than 1 per cent.

The financial sub-index rose 0.5 per cent, lifted by embattled wealth manager AMP, which clawed back from previous session's losses to climb 5 per cent. AMP shares on track for best session since Feb 26 after the company reiterated that Francesco De Ferrari would remain as its chief executive officer.

In New Zealand, the benchmark S&P/NZX 50 index traded down 0.2 per cent at 12,367.87, with retirement village operator Summerset Group leading the losses.

REUTERS