Australia: Shares end higher as miners lead, virus cases abate

[BENGALURU] Australian shares closed higher on Monday, boosted by mining stocks, after the country's Covid-19 hotspot state of Victoria reported its lowest single-day rise in new infections in nearly three months.

The S&P/ASX 200 index ended 0.7 per cent higher at 5,899.5.

Victoria recorded 35 new Covid-19 cases, with residents in its capital Melbourne now allowed outside for exercise for two hours, double the limit under the original lockdown measures.

"Easing (of) restrictions is a positive," said Damian Rooney, director of equity sales at Argonaut.

Among shares and sectors, Rio Tinto led the gains with its near 4 per cent rise, while Fortescue Metals Group and BHP Group added 2.1 per cent and 1.9 per cent, respectively.

Analysts said the top management changes at Rio announced on Friday should help the company move forward after the destruction of two significant Aboriginal rockshelters.

A near 5 per cent drop in financial giant Macquarie Group capped broader gains after warning that its first-half profit will fall by around 35 per cent.

The gold index marked its biggest intraday percentage jump in more than three weeks, ending 3.3 per cent higher, as bullion prices rose due to a weak US dollar.

"It's a fairly broad brush here with gold continuing to garner a fair amount of love," Mr Rooney said.

Shares of buy now, pay later firms were the outliers and continued their slump as investors look to reprice these stocks, with Afterpay falling as much as 5 per cent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index ticked up 0.4 per cent to finish at 11,790.54.

The market found support from Prime Minister Jacinda Ardern's announcement that the coronavirus restrictions will lift on Sept 21, except in its biggest city, Auckland, which is the epicentre of a second wave of infections.

REUTERS