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Australia shares end higher on tech surge, virus slowdown optimism

Published 24/08/2020, 04:45 pm
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* Tech stocks finish at all-time high

* Effective unemployment forecast weighs

* NZ extends Auckland lockdown (Updates to close)

By Arpit Nayak

Aug 24 (Reuters) - Australian shares settled higher on Monday, with tech stocks ending at a record peak while a significant slowdown in fresh daily coronavirus cases fuelled hopes that a deadly second wave may be on the wane.

The country's second-most populous state of Victoria reported its smallest daily rise in fresh COVID-19 cases in seven weeks following strict lockdown curbs. S&P/ASX 200 index .AXJO rose 0.3% to 6,129.60, snapping two straight sessions of losses.

However, investor optimism was dulled to a degree by Treasurer Josh Frydenberg's forecast that effective unemployment in Australia would breach 13% by the end of September amid lockdowns. real unemployment rates are likely a lot higher, government payments, including JobKeeper and JobSeeker, have kept people employed but can't go on forever," said Simon Herrmann, an equity analyst at Wise-Owl.com.

"There are significant risks to the real economy but the stock-market party continues as if nothing has happened, that can't be healthy in the long run."

Technology stocks .AXIJ jumped 3.2%, tracking the tech-heavy Nasdaq Composite's .IXIC record finish on Friday. .N

Afterpay APT.AX , the biggest stock on the sub-index, advanced 4.8% after the buy-now-pay later firm said it would acquire Spain-based Pagantis and expand into Europe. miners .AXMM tacked on 0.6%, with Fortescue Metals Group FMG.AX and BHP Group BHP.AX adding 3.2% and 0.6%, respectively.

Top lender Commonwealth Bank of Australia CBA.AX eased 1%, making it the biggest loser among financials .AXFJ . The rest of the "Big Four" banks also ended lower.

New Zealand's benchmark S&P/NZX 50 index .NZ50 climbed 0.7% to finish the session at 11,921.07.

Prime Minister Jacinda Ardern extended a coronavirus lockdown in Auckland until the end of the week in a bid to enable the country to gradually rollback its scale of emergency restrictions.

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