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Australia shares climb to 4-month highs, NZ stalls

Published 21/04/2016, 12:09 pm
© Reuters.  Australia shares climb to 4-month highs, NZ stalls
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SYDNEY/WELLINGTON, April 21 (Reuters) - Australian shares climbed 0.8 percent to their highest in almost four months on Thursday as surging prices for oil and iron ore lifted major mining and energy companies.

The S&P/ASX 200 index .AXJO rose 41.1 points to 5257.41 by 0200 GMT. The benchmark index has now climbed 6.6 percent in just eight sessions.

Driving the gains was a rousing recovery in iron ore, Australia's single biggest export earner, which hit 10-month highs amid a jump in steel prices in China.

"The Chinese stimulus driven surge in commodities continued to rally industrial metals," says broker IGN, noting steel rebar futures in Shanghai climbed over 6 percent on Wednesday to their highest since September 2014.

"Unsurprisingly, the energy and materials sectors were the strongest performers in most markets."

The energy sector jumped 2.5, while basic materials added 1.5 percent.

BHP Billiton (LON:BLT) BHP.AX rose 3.6 percent to its highest since early November, while Rio Tinto (LON:RIO) RIO.AX added 1.8 percent to reach ground last trod in October.

Gold miner Oz Minerals OZL.AX was another gainer, reaching a three-year peak after reaffirming its production guidance.

Conglomerate Wesfarmers WES.AX put on 1.1 percent after reporting solid food and liquor sales.

New Zealand's benchmark S&P/NZX 50 index .NZ50 was largely flat, inching down 0.01 percent or 0.71 points to 6,900.06.

Air New Zealand AIR.NZ lost 0.7 percent after the airline announced its March group load factors were down 2.4 percentage points. company Spark NZ led losses, falling 1.5 percent while Contact Energy CEN.NZ slipped 1.3 percent.

The New Zealand subsidiaries of Australian banks were the top performers, with ANZ ANZ.NZ rising 2.7 percent and Westpac WBC.NZ up 2.3 percent.

Infrastructure company Infratil IFT.NZ was up 1.2 percent after announcing a $30 million deal with electric vehicle company Wrightspeed Inc. more individual stocks activity click on STXBZ

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