Australia, NZ shares hit 8-week high on optimism over Sino-US trade talks

[BENGALURU] Australian shares ended at an eight-week high on Wednesday as global markets rallied on renewed optimism that the United States and China are inching towards a deal to end their bruising trade war.

In palpable relief after weeks of volatility in markets, MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.5 per cent to its highest level since Dec. 14.

The S&P/ASX 200 index closed up 1 per cent or 55.9 points to 5,778.30, building on a gain of 0.7 per cent in the previous session.

News that Sino-US trade talks in Beijing had been extended into an unscheduled third day boosted risk appetite.

US President Donald Trump later said on Twitter that "Talks with China are going very well!"

Energy stocks soared 1.9 per cent to an over five-week high, with sector heavyweight Woodside Petroleum Ltd putting on 2.3 per cent while Oil Search Ltd added 2.7 per cent.

Oil prices surged on Wednesday, extending gains from the previous session as renewed US-China trade talks and supply cuts by Opec propped up markets.

A jump in iron-ore and copper prices supported miners, with the metals and mining index tacking on 0.5 per cent.

Rio Tinto Ltd and Fortescue Metals Group rose 1.1 per cent and 2.7 per cent respectively.

Gold stocks caught a break after steep falls in the previous two sessions to edge higher. Beadell Resources Ltd was the top gainer on the sub-index after its December gold production surged 27 per cent compared to November.

Financial stocks also rose, with three of the "Big Four" lenders notching gains. Magellan Financial Group Ltd was the best performer, adding over 10 per cent to end at a near five-week high.

Healthcare stocks raced ahead, tacking on 2.1 per cent to hit a near three-month high. Heavyweight CSL Ltd rose 2.6 per cent while Cochlear Ltd gained 2.9 per cent.

New Zealand's benchmark S&P/NZX 50 index jumped 1.4 per cent or 126.07 points to finish at 8,947.22, an over eight-week high.

Dairy firm a2 Milk Company Ltd was among top gainers, up 3.7 per cent while Fonterra Shareholders' Fund firmed 1.3 per cent.

REUTERS