Australia, NZ shares hit 2-1/2-month high on bets of economic recovery

[SYDNEY] Australia and New Zealand stock indexes on Tuesday surged to their highest in more than two months, fuelled by mounting hopes of a global economic recovery as more countries emerge from the coronavirus-induced lockdown.

The S&P/ASX 200 index advanced more than 2 per cent for the second straight session and ended 2.9 per cent firmer at 5,780 points. The benchmark hit the highest level since March 11 and enjoyed its best session since April 9.

In New Zealand, which reported a monthly trade surplus in April, the main S&P/NZX 50 bourse closed 1.3 per cent higher at 10,914.74 points after touching its highest since March 11.

Japan on Monday joined a growing list of countries that have relaxed curbs instated to contain the spread of the pandemic. Meanwhile, China vowed to strengthen its economic policy and continue efforts to lower lending rates to revive its economy.

"Months out from reporting season and with plenty of noisy and backward-looking headline data we don't have much to hold onto except hope, and that's what this recovery trade we are seeing this week is based on," analysts at RBC Capital markets said.

In Australia, Prime Minister Scott Morrison called for an ideological truce between employers and workers to revive the economy, but said the country would not open its borders "anytime soon".

REUTERS