Australia: Shares follow Wall Street higher on recovery, stimulus hopes

[BENGALURU] Australian shares extended gains on Thursday, tracking a rally on Wall Street as stronger data from the world's top two economies and hopes of additional US stimulus lifted investor sentiment.

The S&P/ASX 200 index rose as much as 0.9 per cent and was up 0.6 per cent at 6,101.2 by 1235 GMT, heading for a second straight session of gains.

Overnight, all three major US stock indexes closed higher, boosted by a more than expected rise in US factory orders and an expansion in US private payrolls last month.

However, reports of a sluggish recovery in some sectors in the United States added to expectations for Washington to reach a deal on new stimulus to counter the blow from the Covid-19 pandemic.

Among gainers on the Australian benchmark index, blue-chip financial firms were the biggest boost, advancing 1.4 per cent in their second straight session of gains.

Top lenders Commonwealth Bank of Australia rose 1.2 per cent, while Westpac Banking Corp was up 1.9 per cent.

Healthcare stocks added up to 1.7 per cent, with heavyweights CSL and ASX-listed shares of Resmed Inc gaining 2.5 per cent and 1.7 per cent, respectively.

Among losers, gold stocks declined the most, down 1.6 per cent, as bullion prices slumped more than 1.5 per cent overnight on the dollar's rebound.

Newcrest Mining and Northern Star Resources lost 1.2 per cent and 1.5 per cent, respectively.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index climbed as much as 1 per cent to 12,020.6, in its best intraday percentage rise in about two weeks.

Fisher & Paykel Healthcare Corp and a2 Milk Co were among the top gainers, adding 1.9 per cent and 2.7 per cent, respectively.

Skycity Entertainment was the top gainer on the index, rising as much as 3.2 per cent to its highest since July 30, after the casino operator posted a 46.3 per cent rise in full-year net profit from continuing operations.

REUTERS