Australia: Shares hit 3-week high as Covid-19 cases stabilise

[BENGALURU] Australian shares rose to a three-week high on Tuesday, boosted by heavyweight financial stocks, after the country's second-most populous state reported a small rise in new Covid-19 infections, lifting investor sentiment.

As of 0106 GMT, the S&P/ASX 200 index rose 0.56 per cent to its highest since July 22. The benchmark closed 1.76 per cent firmer on Monday.

Daily infections in Victoria peaked at 725 on Aug 5 and have been trending lower in recent days, following the imposition of a hard lockdown in Melbourne on July 19

Investors also eyed stalled US policymakers' efforts to hammer out a coronavirus relief bill.

US congressional leaders and Trump administration officials said on Monday they were ready to resume negotiations on a coronavirus aid deal, but talks remained deadlocked.

Back home, solid gains in Australian banks helped the financial sub-index rise 1.2 per cent to its highest since July 30.

The country's largest lender, Commonwealth Bank of Australia , which is slated to report is annual results on Wednesday climbed 1.7 per cent, while the rest of its "Big Four" peers added between 2 per cent and 2.3 per cent.

Mining stocks climbed 0.8 per cent with the world's fourth-largest iron ore miner, Fortescue Metals Group, adding nearly 2 per cent to hit a record high after it won a tender to supply Chinese steelmaker HBIS Group.

James Hardie Industries, the world's biggest fibre cement maker, jumped 6 per cent to a six-month high, making it the top performer in the local benchmark index as the company forecast higher full-year earnings from an improving US housing market.

However, gold stocks fell about 1.2 per cent as bullion prices retreated from an all-time high hit in the previous session.

Losses in the sub index were led by De Grey Mining, down 4.8 per cent, followed by Alacer Gold Corp, which fell 4 per cent.

In New Zealand, the benchmark S&P/NZX 50 index dipped 0.2 per cent at 11663.72 points by 0111 GMT.

The country's largest construction firm Fletcher Building lost as much as 3.4 per cent after it forecast its first annual net loss in two years and warned of persistent challenges across its supply chains in the year ahead.

REUTERS