Australia: Shares up on financials, slowing virus, New Zealand hits record high

[BENGALURU] Australian shares advanced on Wednesday, powered by financial major Commonwealth Bank of Australia, and as investors drew relief from news that the spread of the coronavirus outbreak in China may be slowing and it may be over by April.

The S&P/ASX 200 index rose 0.4 per cent to 7,086.1 by 2352 GMT. The index hit its highest level in nearly three weeks earlier in the session.

Top lender Commonwealth Bank of Australia posted a smaller-than-expected drop in half-year cash earnings, sending its shares more than 3 per cent higher to mark their highest since May 2017.

Wednesday's gains are mainly driven by CBA results and the market would climb higher in the near-term as earnings results are going to be supportive of current valuation of heavyweight stocks like CBA, said Henry Jennings, senior analyst and portfolio manager at Marcustoday Financial Newsletter.

Underpinning the positive sentiment, a Chinese senior medical adviser said the virus outbreak in the country would hit a peak this month, and the epidemic might be over by April.

The number of deaths in China's central Hubei province rose by 94 to 1,068 as of Tuesday, while a further 1,638 new cases were detected in the province - the lowest since Jan 31.

Financials stocks boosted the benchmark, with Commonwealth Bank pushing the sub-index to its highest level since Oct 31 last year.

Meanwhile, biotech major CSL, which raised its full-year profit forecast, fell from a record high it scaled earlier in the session to trade 1.5 per cent lower.

Marcustoday's Jennings attributed the move to investors booking profits after CSL's "stellar run" so far this year. The stock has gained 18.1 per cent in 2020 as of Tuesday's close.

Mining sector slipped, with heavyweights BHP Group and Rio Tinto Ltd falling up to 0.5 per cent and 0.9 per cent, respectively.

"Investors are switching from resources into the banking sector following the CBA announcement," added Jennings.

Vitamin maker Blackmores slumped as much as 23.4 per cent after the China-exposed firm said it expects profit to more than halve this year due to supply disruptions from the coronavirus outbreak.

Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index gained as much as 0.7 per cent to hit a record high briefly before the Reserve Bank of New Zealand held the official cash rate at 1 per cent, in line with a Reuters poll.

New Zealand-listed shares of Westpac Banking Corp advanced up to 0.5 per cent, while Fisher & Paykel Healthcare Corp hit a record high.

REUTERS