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Australia shares advance as miners, Wall Street surge

Published 06/08/2020, 11:37 am
Updated 06/08/2020, 11:42 am
© Reuters.

* Miners hit over 9-year peak as iron ore prices improve

* Victoria reports record COVID-19 deaths

* NZ down as healthcare stocks dip

By Arpit Nayak

Aug 6 (Reuters) - Australian shares rose on Thursday after Wall Street notched overnight gains on strong corporate earnings and hopes for further U.S. stimulus, while domestic miners stormed to their highest in more than 9 years as commodity prices strengthened.

Concerns that the global economy is stalling amid a surge in coronavirus cases has increased calls for more fiscal aid, a move stock investors have welcomed.

The S&P/ASX 200 index .AXJO was up 0.7% to 6,041.5 by 0102 GMT.

Australian shares tracked the strength in Wall Street as Walt Disney (NYSE:DIS) Co's DIS.N surprise quarterly profit beat boosted broader sentiment and also helped the Dow Jones Industrial Average .DJI finish 1.4% higher, while the S&P 500 .SPX and the Nasdaq Composite .IXIC also ended in the black. .N

In Australia, the COVID-19 crisis deepened as second-most populous state Victoria reported a record 15 deaths on Wednesday even as most businesses in the state prepared to temporarily stop trading. miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX rose up to 3.7% and 1.4%, respectively, to push heavyweight miners .AXMM to their highest since May 2011 as iron ore futures found support from a pick-up in China demand. IRONORE/

Energy stocks .AXEJ were driven higher after oil prices hit a five-month high as U.S. crude inventories fell sharply and the U.S. dollar weakened. O/R

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Oil and gas producers Woodside Petroleum WPL.AX and Santos STO.AX tacked on 1.6% and 2.3%, respectively.

The "Big Four" Australian banks all gained between 0.8% and 1.3% to lead gains among financials. .AXFJ

Healthcare stocks .AXHJ were the only major sub-index trading in negative territory as industry giant CSL Ltd CSL.AX eased 1.4% and accounted for a bulk of the losses.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 eased 0.3% to 11,723.75, also dragged down by healthcare stocks.

Fisher & Paykel Healthcare Corp FPH.NZ slid 2.2%, while Ryman Healthcare RYM.NZ gave up 0.6%.

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