Australia: Shares rise on easing virus worries, Coca-Cola Amatil deal

[BENGALURU] Australian shares rose on Monday as Covid-19 hotspot Victoria reported zero new cases for the first time in four months and Coca-Cola Amatil received a US$6.6 billion buyout bid.

Gains in healthcare and tech stocks helped the S&P/ASX 200 index firm 0.4 per cent to 6,190.10 by 0049 GMT.

Victoria state has now gone 24 hours without detecting any new Covid-19 cases, a milestone last achieved four months ago, raising hopes that a stringent lockdown of Melbourne will be eased.

The state's Premier Daniel Andrews on Sunday had delayed the reopening of the city which went under a lockdown in July, even as businesses argued for the need to reopen the economy.

Meanwhile, Coca-Cola Amatil surged 16 per cent to see its best day in over a decade and top the benchmark after Coca-Cola European Partners offered to buy the Australian bottler, in what would be the country's biggest deal this year.

Coca-Cola's jump also pushed consumer stocks 2 per cent higher. The index marked its best session in nearly three weeks.

Aiding sentiment were signs of US stimulus talks gathering momentum after House Speaker Nancy Pelosi reiterated the need for a round of aid as soon as possible and said the President Donald Trump's administration was reviewing the latest plans.

Among other individual shares and sectors, the tech index rose 2.1 per cent. Software maker WiseTech Global, jumped 3.3 per cent and Bravura Solutions Ltd added 2.8 per cent.

Healthcare stocks gained 1.1 per cent, benefiting from firmness in the greenback as the United States is a top export destination for the companies.

Biotech major CSL jumped 1.6 per cent, rising the most on the sub-index.

The heavyweight financial index slipped, with Westpac Banking Corp shares falling 0.9 per cent after it revealed it would book a US$870.4 million hit in second-half results.

Markets in New Zealand were closed for a holiday.

REUTERS