Australia, NZ stocks finish up as hopes of stimulus soothe Brexit fears

[MELBOURNE] Australian shares climbed 0.8 per cent on Wednesday as global markets regained some semblance of stability following the Brexit rout, with NZ stocks also taking comfort from the calmer sentiment to add 1.3 per cent.

The S&P/ASX 200 index added 39.13 points to 5142.40 at the close of trade. The benchmark had dropped 0.7 per cent on Tuesday.

Gains came as US Federal Reserve Governor Jerome Powell said the Brexit result had shifted global risks "to the downside", reinforcing expectations of no near-term US rate rise, while financial markets were also supported by hopes of further stimulus globally.

Japanese Prime Minister Shinzo Abe on Wednesday pledged to use all available policy tools to keep the wheels of the economy turning while Chinese authorities also moved to calm investors.

New Zealand's benchmark S&P/NZX 50 index added 87.63 points to finish the session at 6,804.21, its highest in three sessions.

REUTERS