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Australia: Shares gain 2% on Wall Street rally, upbeat data

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Australian shares rose 2 per cent on Tuesday to notch their best intraday session in two weeks after a tech-led overnight rally on Wall Street and strong manufacturing data from leading economies bolstered risk appetite.

[BENGALURU] Australian shares rose 2 per cent on Tuesday to notch their best intraday session in two weeks after a tech-led overnight rally on Wall Street and strong manufacturing data from leading economies bolstered risk appetite.

The tech-heavy Nasdaq Composite finished at an all-time high overnight as US tech giant Microsoft Corp's pursuit of Chinese-owned TikTok's US operations lifted sentiment.

Investors also placed bets on further U.S. stimulus as Congressional Democrats and White House negotiators said they had made progress in discussions over a coronavirus relief bill.

The S&P/ASX 200 index was up 2 per cent at 6,047 by 0056 GMT, marking its best session since July 21.

Back home, with the Reserve Bank of Australia expected to hold rates steady at a meeting later in the day, all eyes will be on its economic forecasts as the country witnesses a resurgence in Covid-19 cases.

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Australia's second-largest city Melbourne on Monday announced fresh coronavirus-related restrictions on retail, manufacturing and administrative businesses, igniting fears of more job losses ahead.

Energy stocks gained on stronger oil prices as a string of positive manufacturing data from the United States, Europe and China indicated a factory recovery may be on the cards despite rising Covid-19 cases.

Woodside Petroleum gained 2.3 per cent, while Santos rose 4.3 per cent.

Solid gains for the "Big Four" Australian Banks lifted heavyweight financials up as much as 2.8 per cent, their best session since July 21.

Tech stocks took a cue from their US counterparts to climb up to 3.9 per cent, with buy-now-pay-later firm Afterpay adding 5.9 per cent.

Miners and healthcare stocks also rode a wave of optimism to book solid gains.

Only gold stocks traded in the red as the bullion weakened on positive US economic data.

New Zealand's benchmark S&P/NZX 50 index climbed 0.9 per cent to 11,776.41.

Local shares of lenders Westpac Banking Corp and Australia and New Zealand Banking Group rose 2.7 per cent and 2.9 per cent, respectively.

REUTERS

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