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By Soumyajit Saha
May 4 (Reuters) - Australian shares settled higher on Monday, driven by gains in healthcare and industrial stocks, while payments technology company Afterpay surged more than 35% after unveiling China's Tencent Holdings as a shareholder.
The S&P/ASX 200 index .AXJO rose 1.41% to 5,319.8, off 26.1% from its record high touched in February and down 21.52% so far this year.
Shares of buy-now-pay-later firm Afterpay Ltd APT.AX climbed to A$39.59 within the first few minutes of the open, not far off an all-time high of $41.14 they reached in February.
The reveal of Tencent Holdings 0700.HK as an Afterpay shareholder "seems to have fired up imagination for more potential international buying into the Australian market", said Michael McCarthy, chief market strategist at CMC Markets. news also helped the subindex for industrial stocks .AXNJ rise 1.5%.
Healthcare stocks .AXHJ rose more than 2%, with heavyweight CSL Ltd CSL.AX adding 2.9%, while Resmed Inc RMD.AX gained 1.9%.
A weaker Australian dollar also helped as the healthcare sector relies on exports to the United States. FRX/
Gold stocks .AXGD outperformed all other subindexes to rise more than 6%, with Newcrest Mining NCM.AX jumping over 6.5%.
Rising U.S.-China tensions over the coronavirus kept bullion underpinned near the key $1,700 per ounce level, while domestic gold miners, which earn significant revenues from exports, also benefited from a stronger greenback. GOL/
Financials .AXFJ were higher, with the "Big Four" banks rising between 1.8% and 2.8%.
Westpac Banking Corp WBC.AX , Australia's second-largest lender, settled higher even after it posted a 70% drop in first-half cash earnings and halted its decision on an interim dividend. rise could be partially due to the fact that Westpac shares were already "defensively priced" after poor results from National Australia Bank NAB.AX and Australia and New Zealand Banking Group ANZ.AX last week, McCarthy said.
The number of issues on the ASX that advanced were 694 while 901 declined.
The most heavily traded shares by volume were of Qube Holdings QUB.AX as the logistics services provider resumed trading after being voluntarily halted since April 27, shortly after which the company announced a A$500 million equity raise. Zealand's benchmark S&P/NZX 50 index .NZ50 settled slightly higher, helped by gains in consumer and financial stocks.