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Australia, NZ shares gain as vaccine euphoria lifts recovery hopes

Published 11/11/2020, 04:43 pm
Updated 11/11/2020, 04:48 pm
© Reuters.

* Energy stocks jump to their highest since July 3

* Financials extend gains; CBA records highest level since Aug 13

* RBNZ keeps rates at record low, unveils funding-for-lending facility (Updates to close)

By Deepali Saxena

Nov 11 (Reuters) - Australia shares ended higher on Wednesday for a fifth consecutive session, powered by financial and energy stocks, as promising news regarding an effective COVID-19 vaccine stoked hopes of a swift global economic recovery.

The Australian benchmark S&P/ASX 200 index .AXJO closed 1.7% firmer at 6449.7, after scaling to its highest level since March 3 during the session.

Pfizer Inc (NYSE:PFE)'s PFE.N announcement on Monday about its COVID-19 vaccine candidate, developed with German partner BioNTech SE BNTX.O , being more than 90% effective in preventing infection has led global investors back to battered airline, travel and tourism stocks. reflation trade continues to work in earnest and the rotation to the unloved areas of the market continues," Pepperstone's Chris Weston wrote in a note.

Australia's flag carrier Qantas Airways QAN.AX extended gains into a third straight session, while travel booking firm Webjet WEB.AX jumped nearly 4% to register a seventh session of gains.

The energy index .AXEJ rose as much as 5.1% to its highest level since July 3 as crude prices strengthened. O/R

Whitehaven Coal WHC.AX and Oil Search OSH.AX were the top gainers in the sub-index, climbing 8.9% and 7.6%, respectively.

Woodside Petroleum WPL.AX added more than 6% after the country's largest independent gas producer reaffirmed that its Scarborough and Pluto Train 2 liquefied natural gas project is on track for a final investment decision in the second half of 2021. heavyweight financial stocks .AXFJ advanced 2.3%, with shares of Commonwealth Bank of Australia, the country's largest lender CBA.AX , rising 2.8% even as it reported a first-quarter cash profit drop. stocks .AXGD fell 1.7%, as the vaccine-led euphoria drove investors towards riskier assets, denting bullion's safe-haven appeal.

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In New Zealand, the benchmark S&P/NZX 50 index .NZ50 ended up 0.4% at 12665.63.

The country's central bank introduced a funding facility on Wednesday that would reduce costs for lenders while it held its benchmark rate at record low. the RBNZ can ensure this lending predominantly supports businesses, it is often easier for cheap funding to simply fuel more mortgage lending," analysts at ING said in a note.

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