[BENGALURU] Australian shares edged higher on Wednesday, lifted mostly by tech and industrial stocks, a day after the government promised billions in the federal budget to help take the coronavirus-stricken economy out of recession.

The S&P/ASX 200 index rose 0.25 per cent to 5,977.2 points by 0010 GMT.

The Australian government on Tuesday announced billions in tax cuts and programmes to boost employment and infrastructure spending, measures that are set to push the budget deficit to a record A$213.7 billion (S$207 billion) for the fiscal year ending June 30, 2021.

"The federal budget seems to have wide support, and the market certainly took it in its stride faced with the complete economic dislocation from the virus," said James McGlew, executive director of corporate stock broking at Argonaut.

The market showed scant reaction to US President Donald Trump's decision to stop negotiations with Democrats on a coronavirus economic relief bill until after the elections.

Among sectors, tech stocks climbed more than 1 per cent, with online property-related services company REA Group gaining 1.4 per cent.

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Industrials were also higher, with employment-related services provider Seek rising 1.7 per cent and Sydney Airport Holdings up 0.8 per cent.

Gold stocks, on the other hand, dropped about 2 per cent as prices of bullion slid after Mr Trump's surprise announcement.

The country's largest independent gold miner Newcrest Mining lost more than 1 per cent, while explorer OceanaGold Corp dropped 2 per cent.

Miners were also trading lower, with BHP Group and Rio Tinto down 1.9 per cent and 0.9 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index was largely flat, as gains among financial and utility shares were pared by losses among healthcare and industrial shares.

REUTERS