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Australia, NZ shares up on U.S. economic optimism, commodities

Published 03/06/2016, 02:55 pm
Updated 03/06/2016, 03:00 pm
© Reuters.  Australia, NZ shares up on U.S. economic optimism, commodities
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SYDNEY/WELLINGTON, June 3 (Reuters) - Australian and New Zealand shares rose on Friday, in line with Wall Street, as investors bet on an upbeat U.S. jobs report, while gains in key commodity prices drove up resource stocks.

Markets expect U.S. employment data to show a non-farm payroll increase of about 164,000 and 0.2 percent rise in average wage earnings in May.

The prices of oil and base metals, meanwhile rose, creating support for resource and energy stocks.

At 0431 GMT, the S&P/ASX 200 index .AXJO was up 33.8 points, or 0.6 percent, at 5,312.7, clawing back most of the previous day's losses. After its worst start to a year in decades, the benchmark is now up 0.6 percent for 2016 so far.

Banks led the advance amid hopes the stocks will be more attractive if Australia cuts interest rates for a second time in 2016, which will boost the economy by lowering borrowing costs.

Australia and New Zealand Banking Group rose 1.6 percent, while Commonwealth Bank of Australia CBA.AX firmed 0.1 percent, Westpac Banking Corp WBC.AX gained 0.2 percent and National Australia Bank NAB.AX grew 0.7 percent.

Miners also fared well, with BHP Billiton (LON:BLT) BHP.AX 1.6 percent higher, rival Rio Tinto (LON:RIO) RIO.AX up by 0.9 percent and its spin-off, South32 S32.AX gaining 1.2 percent.

Among energy stocks, Origin Energy ORG.AX rose 0.6 percent, Caltex Australia CTX.AX added 1.3 percent and Santos STO.AX was up 2.8 percent.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 18.9 points, or 0.3 percent, to 7,022.0, leaving the index poised for its second week of gains.

Steel product manufacturer Steel Tube STU.NZ rose 8.7 percent as investors hunted for bargains after the company fell four sessions in a row.

Tech companies gained, with accounting software firm Xero XRO.NZ up 2.09 percent and online auction site Trade Me TME.NZ rising 0.9 percent.

Air New Zealand AIR.NZ rose 1.4 percent, while Auckland Airport AIA.NZ was up 1.4 percent.

Outdoor equipment retailer Kathmandu KMD.NZ lost 1.3 percent and power companies struggled, with Contact Energy CEN.NZ down 0.6 percent and Mighty River Power MRP.NZ losing 0.5 percent.

For more individual stocks activity click on STXBZ

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