Australia, New Zealand: Shares climb on hopes of massive US stimulus

[BENGALURU] Australian shares rose sharply on Wednesday, tracking Wall Street gains on hopes US lawmakers were moving closer to passing a massive stimulus package to curb the coronavirus outbreak's economic impact.

The benchmark S&P/ASX 200 index jumped 6.1 per cent in early trade, its biggest percentage gain since 2008, but eased to trade 3.8 per cent higher by midday. The benchmark climbed 4.2 per cent on Tuesday.

All three major US stock averages soared over 8 per cent on Tuesday as Washington appeared closer to passing a US$2 trillion economic rescue package, providing a shot of optimism to markets.

"We have seen enormous stimulus unleashed globally and while it cannot stop the economic slump, it does provide a safety net going forward," ANZ said in a note.

Mining stocks jumped as much as 8.9 per cent to their highest level in more than two-weeks, boosted by gold stocks. Alacer Gold Corp rose 15.9 per cent while Resolute Mining soared 17.3 per cent.

Meanwhile, BHP Group and rival Rio Tinto gained more than 7 per cent each.

The "Big Four" banks firmed over 5 per cent, with Australia and New Zealand Banking Group and National Australia Bank rising 8 per cent and 6.5 per cent, respectively.

Qantas Airways was among the best performers on the benchmark, marking its biggest intraday gain ever, after securing extra funds to support it amid global travel curbs due to the worsening virus.

The coronavirus has taken a mounting toll on livelihoods. Virgin Australia said 8,000 of its employees will be put on leave, while casino operator Star Entertainment Group said it will be standing down 90 per cent of its 9,000 staff.

New Zealand's benchmark S&P/NZX 50 index climbed 3.6 per cent, or 329.3 points, to 9,438.4.

SKY Network Television Ltd leaped 34.2 per cent, while Oceania Healthcare advanced 27.6 per cent.

New Zealand posted a monthly trade surplus of NZ$594.00 million (S$500.5 million) in February, while the central bank proposed to buy NZ$250 million in government bonds as part of its quantitative easing programme.

REUTERS