Australia shares end higher on hopes pandemic is peaking

Published 09/04/2020, 05:30 pm
Updated 09/04/2020, 05:36 pm
© Reuters.
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* Benchmark clocks best week in more than eight years

* CSL maintains full-year guidance, shares rise 5.5%

* Energy stocks gain on hopes of oil production cuts (Updates to close)

April 9 (Reuters) - Australian shares closed higher on Thursday amid hopes the coronavirus outbreak was nearing a peak in the United States, while positive comments about the strength of Australian lenders by the central bank also boosted sentiment.

The S&P/ASX 200 index .AXJO closed up 3.5%, or 180.4 points, at 5,387.3, tracking overnight gains on Wall Street. With a weekly gain of 6.3%, the benchmark clocked its best week since December 2011.

New York Governor Andrew Cuomo said the state's efforts at social distancing were working in controlling the virus' spread as hospitalizations reduced on Tuesday from the day before, offering a spot of relief to investors. that the number of new daily coronavirus cases is plateauing are driving expectations that social distancing measures will be lifted soon in parts of the world," Stephen Innes, chief market strategist at AxiCorp, said in a note.

"Relaxing social distancing is the new 'risk-on' barometer."

Adding to the relief, the Reserve Bank of Australia said banks were well-positioned to withstand the coronavirus-driven economic slump, although it flagged some potential weaknesses in the property market. heavyweight financials sub-index .AXFJ ended 4% higher, with the country's "Big Four" banks all clocking robust gains.

Biggest lender Commonwealth Bank CBA.AX rose 3.3%, while Australia and New Zealand Banking Group ANZ.AX gained 6.6%.

Lawmakers approved the country's biggest financial package on Wednesday to blunt the virus' economic impact and subsidise the wages of 6 million people for at least the next six months. stocks .AXHJ led gains on the benchmark, finishing 4.6% higher.

Pharmaceutical giant CSL Ltd CSL.AX , which is among the index's biggest stocks, soared 5.5% after it reaffirmed its earnings forecast for fiscal 2020 despite pressure from coronavirus-related disruptions. .AXMM also posted gains, adding 0.9% as iron ore prices firmed. Mining heavyweights Rio Tinto (LON:RIO) Ltd RIO.AX and BHP Group Ltd BHP.AX both clocked modest gains.

Energy stocks .AXEJ jumped 3.9% as oil futures gained on expectations that top oil producers would agree on production cuts at a meeting later in the day. O/R

Woodside Petroleum Ltd WPL.AX and Santos Ltd STO.AX tacked on 3.9% and 3.8%, respectively.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.7%, or 67.76 points, to finish the session at 9963.90.

Medical device maker Fisher & Paykel Healthcare Corp Ltd FPH.NZ eased 5.7%, while electricity generator Meridian Energy Ltd MEL.NZ lost 4%.

Financial markets in Australia and New Zealand will be closed for holidays on Friday and Monday, and will resume trading on Tuesday, April 14.

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