Australia: Shares end higher on hopes pandemic is peaking

[SYDNEY] Australian shares closed higher on Thursday amid hopes the coronavirus outbreak was nearing a peak in the United States, while positive comments about the strength of Australian lenders by the central bank also boosted sentiment.

The S&P/ASX 200 index closed up 3.5 per cent, or 180.4 points, at 5,387.3, tracking overnight gains on Wall Street. With a weekly gain of 6.3 per cent, the benchmark clocked its best week since December 2011.

New York Governor Andrew Cuomo said the state's efforts at social distancing were working in controlling the virus' spread as hospitalisations reduced on Tuesday from the day before, offering a spot of relief to investors.

"Signs that the number of new daily coronavirus cases is plateauing are driving expectations that social distancing measures will be lifted soon in parts of the world," Stephen Innes, chief market strategist at AxiCorp, said in a note.

"Relaxing social distancing is the new 'risk-on' barometer."

Adding to the relief, the Reserve Bank of Australia said banks were well-positioned to withstand the coronavirus-driven economic slump, although it flagged some potential weaknesses in the property market.

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New Zealand's benchmark S&P/NZX 50 index fell 0.7 per cent, or 67.76 points, to finish the session at 9,963.90.

REUTERS