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Australia shares near 1-year high on BHP's record dividend, strong profit

Published 16/02/2021, 11:23 am
© Reuters.
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* BHP posts best H1 profit in seven years, shares up 2.5%

* NAB points to improving economy, shares up 2.3%

* NZ bourse recovers, gains as much as 0.8%

Feb 16 (Reuters) - Australian shares rose on Tuesday to their highest in nearly a year, driven by BHP Group BHP.AX after the miner posted strong profit and declared a record interim dividend, while a surge in commodity prices further lifted mining and energy stocks.

The S&P/ASX 200 index .AXJO was up 0.3% at 6,888.3 by 2330 GMT. It rose up to 0.7% earlier in the session to hit 6,913.70, its highest since Feb. 25, 2020.

Miners .AXMM were the biggest boosts to the benchmark, jumping 1.7% to their highest since Jan. 27.

BHP Group BHP.AX rose 2.5% on reporting its best first-half profit in seven years and declaring a record interim dividend. It also said it expects strong Chinese demand to continue in 2021. stronger report (from BHP) against a backdrop of growth positive moves overnight should see a constructive start to Asia Pacific trading today," said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking.

Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX , which are scheduled to release their results later in the week, advanced as much as 3.8% and 1.7%, respectively.

Miners were also helped by strong copper prices, which jumped to their highest since 2012 on Monday. MET/L

Financials .AXFJ gained 1.1%, with three of the "Big Four" banks trading in positive territory.

Shares of the country's second-biggest lender, National Australia Bank NAB.AX , were up 2.3% after the bank posted a pickup in first-quarter profit from the previous two quarters, and pointed to encouraging signs on the economy. lender Commonwealth Bank of Australia CBA.AX lost up to 1.3%, weighing on the benchmark.

Among other gainers, energy stocks .AXEJ climbed as much as 1.6%, pushed by an overnight jump in oil prices as COVID-19 vaccine rollouts promised to revive demand. O/R

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 bounced back, rising as much as 0.8% to 12,608.27.

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