You are here

Australia shares buoyed by US jobs data; NZ closes at record high

[BENGALURU] Australian shares rose on Monday as a firm US jobs data report boosted global investor sentiment while material stocks finished strong on news that Australia could be exempted from new US trade tariffs on steel and aluminium imports.

The S&P/ASX 200 index rose 0.6 per cent, or 32.90 points, to 5,996.10 at the close of trade, its highest since Feb 28. The benchmark rose 0.3 per cent on Friday.

The US economy added the biggest number of jobs in over 1-1/2 years in February, data showed, but a slowdown in wage growth pointed to only a gradual increase in inflation this year, which potentially reduces chances of a faster pace of rate hikes by the Federal Reserve.

Sentiment was bolstered when US President Donald Trump said that he was working on a deal so Australia would be exempt from the tariffs that had roiled markets worldwide.

sentifi.com

Market voices on:

Metals and mining stocks led the gains, with their sub-index finishing the day 1.4 per cent higher, helped by a recovery in base metal prices.

Giant BHP Billiton, the largest miner on the index by market capitalisation, rose 2.1 per cent while Rio Tinto climbed 2.3 per cent to its highest close since March 8.

Gold miner Newcrest mining was the biggest drag on the index, ending the day 4.6 per cent lower, its lowest in seven months.

Newcrest said on Monday its fiscal 2018 guidance would be adversely affected by the closure of its flagship mine following damage to a tailings dam wall.

New Zealand shares ended Monday's session at a record high, led by consumer stocks.

The benchmark S&P/NZX 50 index rose 0.9 per cent or 73.98 points to finish at 8,463.99.

A2 Milk ended about 4.7 per cent higher and served as the biggest boost on the benchmark, while Heartland Bank Ltd ended down 2.7 per cent.

REUTERS