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Australia, NZ shares rise on hopes of more China stimulus

Published 05/02/2020, 01:04 pm
Updated 05/02/2020, 01:07 pm
© Reuters.  Australia, NZ shares rise on hopes of more China stimulus
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* Aussie healthcare index hits a record high

* Newcrest drops to over six-week low

* NZ unemployment rate falls in last qtr of 2019

By Shreya Mariam Job

Feb 5 (Reuters) - Australian shares tracked broader Asia higher on Wednesday as hopes grew that China would take more steps to limit the economic impact of the coronavirus outbreak that has killed nearly 500 people.

The S&P/ASX 200 index .AXJO rose 0.4% or 26.90 points to 6,975.60 by 0201 GMT.

China is readying more measures to stabilize its economy, which includes an additional trimming of some key lending rates in the coming weeks along with the hundreds of billions of dollars it has already infused in the financial system. death toll passed 490 on Wednesday, as two U.S. airlines suspended flights to Hong Kong following the first fatality there, while Macau urged casinos to shut their doors. shutdowns in China covers a fare chunk of their GDP growth and if the shutdown continues ... into a second or third month it will have a further impact on their growth which will have direct influence on our market," Mathan Somasundaram, market portfolio strategist at Blue Ocean Equities said.

Domestic markets are in a holding pattern ahead of corporate earnings expected over the next few weeks, he said.

Financial stocks .AXFJ gained 0.3%, with shares of Australia and New Zealand Banking Group ANZ.AX rising 0.3%. National Australia Bank NAB.AX gained 0.6%.

Material stocks .AXMM climbed 0.7% as a recovery in copper prices helped the index.

Heavyweight miners BHP Group BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX rose as much as 1.3% and 0.8%, respectively.

Elsewhere, Australian mining services provider Perenti Global Ltd PRN.AX said it was considering buying Downer EDI's DOW.AX mining servicing business. Shares of the two companies rose 6% and 2.6%, respectively.

Healthcare stocks .AXHJ rose as much as 1.9%, scaling a record high, with shares of biotherapeutics firm CSL Ltd CSL.AX boosting gains with an up to 2.5% gain.

Gold stocks .AXGD were among the only losers on the benchmark, with Australia's largest independent gold miner Newcrest Mining NCM.AX declining as much as 2.7%.

Overnight spot gold prices XAU= fell 1.6% as China's stimulus measures drove investors back to riskier assets. GOL/

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5% or 60.69 points to 11,572.18.

Fletcher Building FBU.NZ and Fonterra Shareholders' fund FSF.NZ gained 1.1% and 0.8%, respectively.

New Zealand's unemployment rate fell in the final quarter of 2019, but jobs growth softened in a mixed bag of labour data released on Wednesday that cemented a view the central bank will stand pat on rates next week. = 6.9979 yuan)

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