You are here

Australia: Shares extend gains on miners, energy stocks

asx.jpg
Australian shares rose for a third straight session on Thursday, following a firmer finish on Wall Street, as mining and energy stocks rose on the back of higher commodities and oil prices.

[BENGALURU] Australian shares rose for a third straight session on Thursday, following a firmer finish on Wall Street, as mining and energy stocks rose on the back of higher commodities and oil prices.

The S&P/ASX 200 index rose 0.6 per cent to 7,019.2 by 0050 GMT, having gained 0.4 per cent on Wednesday.

The energy sector rose the most in more than a month and led the gains on the benchmark after oil prices jumped about 2 per cent overnight.

The country's largest listed oil and gas explorer Woodside Petroleum advanced 2.2 per cent, its biggest intraday jump in nearly two months, while Santos Ltd gained up to 2.3 per cent.

Sentiment was also supported by unconfirmed reports of possible medical advances to combat the coronavirus outbreak in China, which along with strong US economic data pushed the S&P 500 to a record closing high.

While volatility is expected in the short term, markets have shaken off a lot of things over the last year and are likely to shake off the coronavirus too, said Nick Twidale, general manager at IC Markets.

The World Health Organization, however, played down media reports of "breakthrough" drugs being discovered to treat people infected with the new virus that has claimed more than 560 lives and sparked fears of an economic slowdown in China, Australia's largest trading partner.

Mining stocks were set for their third consecutive session of gains, boosted by strength in copper prices.

Heavyweights BHP Group and Rio Tinto added up to 1.1 per cent and 1.3 per cent, respectively.

The financials sub-index marked its biggest intraday gain in nearly a month, lifted by the country's "Big Four" banks.

Top two lenders Commonwealth Bank of Australia and Westpac Banking Corp rose up to 1 per cent and 2 per cent, respectively.

Shares of Coles Group rose 1.4 per cent after the supermarket chain forecast a smaller-than-expected drop in first-half operating earnings.

Healthcare sector rose up to 1.4 per cent, with the country's biggest drugmaker CSL touching a record high.

However, the improved risk sentiment weighed on safe-haven gold stocks, which extended losses into a second session.

Northern Star Resources fell up to 1.5 per cent, while Evolution Mining was set for the third straight session of losses.

New Zealand's financial markets were closed for a holiday.

REUTERS