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Australia shares gain as cenbank signals stimulus boost

Published 02/12/2020, 11:31 am
Updated 02/12/2020, 11:36 am
© Reuters.
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* RBA sees "solidly positive" growth in Sept and Dec qtrs

* Westpac down 0.7%, sells general insurance arm to Allianz

* Mesoblast gains on FDA fast-track designation for Remestemcel-L

Dec 2 (Reuters) - Australian shares rose on Wednesday after the central bank governor struck an optimistic note about the country's economy, though trade remained subdued as lenders Commonwealth Bank of Australia and Westpac weighed on the index.

The S&P/ASX 200 index .AXJO was up 0.14% at 6,597.40 by 2335 GMT.

Reserve Bank of Australia Governor Philip Lowe struck an optimistic note about economic growth, saying the board was still prepared to boost monetary stimulus, if needed. He added that growth in both September and December quarters was expected to be "solidly positive". on third-quarter gross domestic product due later in the day is likely to show a rebound in the Australian economy - a 2.5% growth in the September quarter from a 7% contraction in the three months ended June. gainers, miners .AXMM were the biggest boost to the benchmark, with global iron ore miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX jumping nearly 2%.

Healthcare sector .AXHJ rose 0.8%, with biotechnology firm Mesoblast MSB.AX soaring as much as 18.6% on getting https:// fast-track designation from the U.S. Food and Drug Administration for its therapy product, Remestemcel-L, to treat acute respiratory distress syndrome.

Financials .AXFJ weighed on the index, with top lenders Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX shedding 1.1% and 0.4%, respectively.

The country's third-largest bank Westpac WBC.AX fell up to 0.7% after the lender said it would sell its general insurance arm to German insurer Allianz ALVG.DE for A$725 million ($534.76 million). the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 was up 0.24% to 12,760.01.

($1 = 1.3557 Australian dollars)

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