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Australia, NZ shares track global rally as Sino-U.S. tensions ease

Published 06/09/2019, 12:50 pm
Updated 06/09/2019, 01:00 pm
© Reuters.  Australia, NZ shares track global rally as Sino-U.S. tensions ease
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* Tech stocks lead gains on benchmark

* Lynas Corp top performer

* Gold miners slump on weaker bullion prices

By Shriya Ramakrishnan

Sept 6 (Reuters) - Australian shares advanced on Friday, as an apparent thaw in the drawn-out Sino-U.S. trade dispute and strong U.S. economic data supported appetite for riskier assets.

The S&P/ASX 200 index .AXJO rose 0.4% to 6,641 by 0211 GMT. The benchmark rose 0.9% on Thursday, and was poised to record a third straight weekly gain.

Markets around the globe cheered news that the United States and China would hold high-level talks in early October in Washington, following weeks of uncertainties triggered by a deepening trade war.

Investors were also encouraged by surveys that showed U.S. private payrolls and the services industry rebounding last month. stocks .AXIJ dominated gains on the benchmark index, tracking their U.S. peers, surging as much as 3.3% to a record peak. Sector heavyweights WiseTech Global WTC.AX and Computershare Ltd CPU.AX climbed between 1% and 2.9%.

Rare earths producer Lynas Corp LYC.AX jumped 5.6%, and was the top performer on the benchmark stock index, after it signed an agreement with a city in Western Australia to explore a potential initial ore processing site. strength in iron ore futures supported gains in the metals and mining sector .AXMM , which heavily export to China.

Global mining giant Rio Tinto (LON:RIO) RIO.AX added 1.1%, while Fortescue Metals Group FMG.AX , the world's fourth-largest iron ore miner strengthened 3.3% to an over 1-month high.

Financial stocks .AXFJ gained 0.7%, with top lenders Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX rising between 0.4% and 0.8%.

Gains in Westpac Banking Corp WBC.AX were however limited, after it was hit with a class action lawsuit filed against its life insurance and pension unit, which it said it would defend itself against. gold stocks .AXGD slumped 3.1%, marking its worst day in over a week, as a risk-on mode dented bullion prices.

Gold miners Evolution Mining EVN.AX and Saracen Mineral Holdings SAR.AX fell 3.2% and 6%, respectively.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 1% to 11,213, and was on track to record a second consecutive weekly gain.

Dairy firm Synlait Milk SML.NZ and Auckland International Airport AIA.NZ gained 3.8% and 2.5% respectively.

Meanwhile, shares of Fonterra FCG.NZ FSF.NZ fell 0.6%, after it sought more time to finalise its annual results, adding to uncertainty around the dairy giant's outlook.

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