Australia: Shares jump on strong commodity prices

[BENGALURU] Australian shares climbed more than 1 per cent in early trade on Monday, buoyed by miners on robust commodity prices, while Australian Pharmaceutical Industries soared on a takeover offer from Wesfarmers.

The S&P/ASX 200 index rose as much as 1.1 per cent to 7,353.4 points, finding further support from Wall Street's strong finish on Friday. The benchmark closed 0.9 per cent higher on Friday.

Elsewhere, Japan's Nikkei gained 2.1 per cent and S&P 500 E-minis futures were largely flat.

Miners jumped as much as 2.8 per cent and hit their highest since May 18, benefiting from a jump in the prices of gold and base metals, including copper.

Global miners Rio Tinto Ltd and BHP Ltd climbed 2.7 per cent and 3.4 per cent, respectively.

Gold stocks advanced 0.4 per cent, with Newcrest Mining Ltd rising 0.9 per cent.

Shares of Australian Pharmaceutical Industries surged 20.5 per cent in their biggest intraday percentage gain since Oct. 16, 2008 after the company said it received a buyout proposal from retail conglomerate Wesfarmers that valued the pharmacy chain operator at A$679.9 mln ($508.9 mln).

Shares of Wesfarmers were relatively flat.

Energy stocks advanced 0.7 per cent, benefiting from a jump in oil prices on falling US inventories and signs of strong Asian demand from both China and India.

Financials posted gains as well, with the "Big Four" banks all trading higher. Commonwealth Bank of Australia , National Australia Bank, Westpac Banking Corp and Australia and New Zealand Banking Group added between 0.3 per cent and 1.1 per cent.

Meanwhile, Australia reported its first locally contracted Covid-19 death of the year on Sunday, while Sydney prepared for a prolonged lockdown as officials warned they were expecting daily cases to top 100.

New Zealand's benchmark S&P/NZX 50 index was up 0.2 per cent at 12,715.84 by 0102 GMT. Software maker Serko and retirement village operator Summerset Group Holdings Ltd were among the top gainers on the bourse.

REUTERS