Australia: Shares rise on US stimulus hopes, gold stocks boost

[BENGALURU] Australian shares rose on Thursday as gold miners posted hefty gains on a stronger bullion, while expectations for a massive US stimulus bill boosted broader risk sentiment.

The S&P/ASX 200 index rose 0.4 per cent to 6,708.5 by 0010 GMT, with miners leading the charge.

Gold stocks gained as much as 1.5 per cent after prices of the yellow metal firmed on hopes of a stimulus package in the United States. Newcrest Mining climbed 1.5 per cent and Northern Star Resources gained 2.3 per cent.

US congressional negotiators were "closing in on" a US$900 billion Covid-19 aid bill and Congress could start voting within 24 hours, lawmakers and aides said. Meanwhile, the US Federal Reserve reiterated its pledge to keep its benchmark interest rate near zero.

Gains from gold stocks helped heavyweight miners jump 0.9 per cent.

BHP Group gained 1.2 per cent and Fortescue Metals Group added 2.1 per cent as iron ore prices rose on supply concerns in China as shipments are expected to slow.

Rio Tinto was up 0.6 per cent after the miner confirmed a US$6.75 billion price tag on underground expansion at its Oyu Tolgoi copper mine in Mongolia while locked in a feud with a majority-owned partner over funding for the project.

Following a strong lead from US peers, local tech stocks scaled a record peak, with Afterpay and Xero jumping 4.1 per cent and 2.2 per cent, respectively.

Meanwhile, Canberra launched a formal appeal to the World Trade Organisation on Wednesday seeking a review of China's decision to levy heavy tariffs on Australian barley imports as ties between the trading partners continued to strain.

New Zealand's benchmark S&P/NZX 50 index rose 0.5 per cent to 12,892.98 after the country reported a record 14 per cent surge in third-quarter gross domestic product as virus curbs were relaxed, beating expectations.

REUTERS